Direccion Comercial

 

Price

Objectives to be achieved with the price policy

First we will negociate with the distributors that our enterprise LU already has for distribute other products. Price policy calls forthe producer to establish a price list and schedule of discounts and allowances that intermediaries see as equitable and sufficient.

We will negociate with our distributors the conditios ofsales(refers to payment terms and producer guarantees),making discounts for early payment, we will also provide distributors a guarantee against defective merchandse or price declines.This last guaranteegive distributors an incentive to buy larger quantities so we will have to produce larger quantities of chocolates. In the different countries where aour chocolates will be present,we will give to ourdistributors full credit for sales in their territory.

Price interval for the product

Talking about the interval price we should have in mind the production cost,the taxes and the distributorscost. The production cost could be a little high because by making this new product we should adapt or buy new machines so the production cost will elevate.The taxes will be like any ohetr taxes of ourproducts. Because the distributors for our new product(chocolates box) will be the same as the distributors  for other products that LU produce(such as biscuits..) the costs of them will not behigh.So the interval price at the end will not be high although we are introducing in the market a new product(that this usually haves lots of difficulties).

Price strategy

The price strategy to befollowed will not be set a single price,we wil applicate a price structute.

The geographical pricing: we will decide the different prices t different locations and countries,also in our country willbe cheaper,because distribution cost will be cheaper.

Price disconts and allowances:our enterprise will give discounts and allowances for early pament, volume purchases and off-season buying....