Commodity determining price method on by coefficient
Abstract : Generally cost accounting method is adoptsed for determining commodity pricing. According to the multiplication principle, commodity determining price method on by coefficient is put forward with factors commodity, sale, purchase, sales locations ( environment ), season and so on . By the factor pricing combine with the cost accounting we can determine profit or loss.
关键词：价格，成本，系数，赢亏 Key word : Price, cost, coefficient ,profit or loss,
Generally cost accounting method is adoptsed for determining commodity pricing. The various costs together with the expected profit is the selling price. This method solves the problem wanted selling price. According to the multiplication principle, commodity determining price method on by coefficient solves attainable selling price.
商品销售价格涉及的因素 The factors of the commodity’s salling price
These factors come from commodity, Seller, Buyer, sales locations ( environment ), season etc, these factors are needed for the sales process.
Purchasing price is the basis for determining selling price, the selling price is directly proportional to the purchasing price.
If saler is strength, consumer trust in him. Even if the salling price is high, consumer also can accept it, so the price is directly proportional to the strength of the seller. For example, the same brand of electrical appliances, in department stores and small shops, the same price, small shops sell difficulty, but the store can ensure a stable consumer source. In order to survive the shop must reduce the price.
It seems that price have nothing to do with buyer , this is illusions created by cost accounting method. Because the purchaser is not included in the cost. But in reality there is relationship between the price and the buyer. For example, the same car accessories used in high-grade car, if you put the accessories price low, the purchaser will think that low price of accessories couldn’t suit his high grade car, he would refuse to use your accessories, but if you put the price high, he would accept. We can concluded that the price is in direct proportional to the buyer. So the seller needs to ascertain gradation for operation between public and high-grade.
销售地点（环境）sales locations ( environment )
The same saler and the same commodities, selling price is not the same at various locations. For example, Tangshan Department Store Group Company South Lake Plaza shopping price significantly lower than its department store prices. Because the department store is located in the downtown area, while the South Lake Shopping Plaza remote.
For the chain business is an exception. Its price is designed to build their own brands and improve their image. Even if the chain operation, some companies also take different prices in different geographical locations. According to the voice of China" news late height" report, the international well-known chain KFC announced recently:”cancel has taken the traditional national unified pricing model will be cancel instead of subdivision differential pricing strategy. It is known later that at different values of the stores price will vary and no longer uniform pricing. that is to say there are no longer unified national price in KFC".
We can concloud that the selling price is proportional to the location.
Clothing price and food price are the most obvious relation to season. Seasonal clothing generally is high prices, while out-of-season clothing generally is depreciated. During the festival food price also generally increases. Obviously the price is proportional to the season.
售价公式 Selling price formula
As mentioned above , several factors are the necessary conditions for the price and proportional to the price. So the price and these factors obey multiplication principle, expressed as:
In the formula：
Pp: Purchasing price
cs : seller coefficient
cp: purchaser coefficient
cl: location coefficient
Coefficient may be more than 1, or less than 1, determining by a reference basis. For example, the saler reference basedon medium size enterprises , the purchaser reference based on the level of mass consumption, locations reference based on Semi urban area, season reference based on off-season.
The selling price decided by this method may be higher than the purchase price, may also be less than the purchase price. its reason can be derived from the analysis of each coefficient. You can adjust your marketing strategies by analysising of each coefficient. Even if you lose you can accept the reality.
The price is directly proportional to the various factors in theory。In practice is also.
A market price is higher than another market by percentage. The seasonal price is highter than off-season price by percentage, and we don’t say the seasonal price is highter than off-season price by the amount of money. As everyone knows CPI is expressed as a percentage but not in the amount of money.
relation between cost accounting and commodity determining price method on by coefficient
We can know that we will be profitable before determine price by cost accounting method, because price is equal to the cost plus profit. But we can’t know if we can profit before determine price by the coefficients method , because the total coefficient may be less than 1.
Comparing the price by cost accounting method with the pricing by the coefficients method, We can determine the profit or loss.
In the large shopping generally operate high-grade goods in order to get high return.
If large shopping operate the low value commodity, profit is low, but the operation cost is constant, so it will loss.
The relationship between the cost accounting method and coefficient method is:
Profit = price coefficient - cost
The cost accounting method solves the problem wanted selling price. The commodity determining price method on by coefficient solves attainable selling price.
Value of the commodity determining price method on by coefficient
we can determine reasonable price so that the merchandise is solded smoothly.
we can clearly analyze reason of profit and loss.
- 赵本东、赵宗宇 《乘法》美国学术出版集团公司，3， P4
Tangshan City quality and Technical Supervision Bureau Kaiping District Branch Bureau