PLANNING RATE PRODUCTS IN THE MANAGEMENT OF ANY INDUSTRY
AND FACTORS AFFECTING
part 2
B. OVERVIEW
One of the difficult decisions facing a company is to set the price. Although the ruling means that the same price for each company that is based on cost, competition, demand and profit. But the optimum combination of these factors varies in accordance with the nature of the product, market, and company goals.
According to Jay W. and Ronald J. Ebert said that: "The determination of the selling price is the process of determining what a company will be received in the sale of their products."
Companies do with the price of different ways. In small companies the price is usually determined by the top management rather than by the market. While the large companies pricing usually handled by the division managers and product lines. Even here the top management also set goals and common pricing policy and the approval of the proposed price of management underneath.
Mulyadi in the book states: "In principle, the selling price must be able to cover the full cost plus a reasonable profit. The selling price with the cost of production plus Mark-up. "
In addition, Hansen & Mowen suggested that the "price of the monetary amount that is charged by a business unit to the buyer or customer for goods or services sold or submitted."
From the above definition can be concluded that the selling price is the amount of expenses a company to produce goods or services plus a percentage of the desired profit company, therefore to achieve the desired profit by the company one of the ways to attract consumers is to determine how the right price for products sold. Price is the price in accordance with a quality product goods, and prices can give satisfaction to consumers.
Boyd, Walker, and Laurreche in a book titled Marketing Management stated that:
"There are a number of ways in setting the price, but any way used should take into account factors situation. The factors include:
1. The company's strategy and other components in the marketing.
2. Expansion of the product in such a way so that the product is considered to be different from other products that compete in quality or level of service to consumers.
3. Cost and price competition.
4. Availability and price of product replacement.
According to Philip Kotler in the book titled Marketing Management in Indonesia stated that:
"The determination of prices is a problem if the company will set the price for the first time. This occurs when a company to develop or obtain new products, will introduce the products to a new distribution channel or a new area, when the bidding on a new labor agreement "
Definition, it explains that each company must decide where he will put the products based on quality and price. In some markets, such as the car market, as many as eight-point price can be found.
Car market in Indonesia there are brands peak (gold standard), for example, mercedez Benz and Jaguar. Underneath there is a luxury brand such as BMW, Audi, etc., and read again there are brands that meet the specific needs: Volvo (security) and Porche (high performance). In the middle there are a number of brands such as Honda, Mitsubishi, Toyota. One level below is a brand, especially the functional benefits such as Suzuki. Under the Suzuki brands are cheaper but also provide satisfactory performance, such as Hyundai. Most are under the brands of the attraction is price, such as East Timor.
The selling price is one of the factors that affect consumer decision to buy a product, consumers will buy a product when there is a balance between the reasons set the selling price.
Sudarsono said that "set the selling price should be considered several matters, among others: (a) the selling price of staple goods, (b) the prices of similar goods, (c) the purchasing power of the community, (d) the period of rotation of capital, (e) regulations regulations and so forth. "
These factors are objective factors. This means private entrepreneurs or traders do not participate, or if there are only small. Factors objective is sometimes not strong enough to be used as the basis for determining the price, so there are factors subjective considerations.