Pricing based on the prices of competitors
Pricing based on the prices of competitors consists in analyzing the cost of production in relation to similar products of other manufacturers. The analysis determines the competitiveness of products. This event consists of four stages. At the first stage, the analysis of the commodity market and the selection of relevant proposals are conducted, which, according to the conditions, will be as close as possible to the characteristics of the product offered by your firm. When selecting, usually, in the calculation takes the products of those firms that occupy a worthy place in the commodity market in a certain area. The second stage is to determine the complex parameters by which the comparison will be made. In the majority of cases, such parameters are the quality of products that are of interest to buyers and have an influential value in the selection. At the third stage, the integral index is calculated. The fourth stage is to determine the cost of consumption of goods taking into account competitive conditions in the market. The whole process is quite laborious, but at the moment price formation based on competitors' prices can be carried out in the shortest possible time when using the SoftERP system.
