Lesson 8 pricing

Task 1. Suggest the Russian equivalents for the words with international roots:

nouns: product, guarantee, form, period, area, steel, company, electricity, gas, investment, factor;

a verb: to determine;

adjectives: central, industrial, public.

Helpful Words and Expressions

1. credit terms – кредитные условия

2. trade-in allowance – сумма денег, отданная за старую вещь и включённая

в счёт покупки новой

3. to cover costs – покрывать затраты

4. to pursue unsound price policy – вести неразумную ценообразовательную

политику

5. supply and demand – предложение и спрос

6. price competition – конкуренция в ценообразовании

7. to set prices - устанавливать цены

Task 2. Read and translate the text.

All products and services have prices. The price depends on different things such as credit terms, delivery, trade-in allowance, guarantees, quality and other forms of service, which price can produce the biggest profit during a long period of time. It's hardly possible to determine such a price. The price may be too high to produce a large volume of sales or too low to cover costs. No other area of marketing operations has been a subject to bad practice. A lot of businesses pursue unsound price policies for long periods of time and are not aware about it.

Prices can be determined in different ways. For example, the prices for meat, cotton and other agricultural prices can be decided in a large central market where forces of supply and demand exist. This is pure price competition. The prices for industrial products (iron, steel, etc.) are usually decided by large companies. As a rule the amount and the price of goods sold to a large number of buyers is controlled by a few competing sellers. Prices also can be set by the government usually for different public services – railroads, electricity, manufactured gas, bus services, etc.

If demand increases, prices rise, profits expand and new investment is attracted. But other factors may be involved as well. Prices are related to each other in different ways. Ultimately, everything is related in price, since the consumer can buy and must pay for everything out of a particular, limited amount of money.

Task 3. Match the Russian words and expressions to English ones:

1) доставка; 2) зависеть от; 3) качество; 4) вряд ли возможно; 5) цены растут; 6) как правило; 7) длительное время; 8) цены на сельхозпродукты; 9) по-разному.

1) for long periods of time; 2) as a rule; 3) delivery; 4) prices rise; 5) quality; 6) it’s hardly possible; 7) to depend on; 8) agricultural prices; 9) in different ways.

Task 4. Fill in the gaps with the words from the right column.

1. It is very difficult … without sound price policy. 1. supply and demand

2. Of course we are interested in producing the … 2. large volume of sales

with the lowest unit costs. 3. trade-in allowance

3. I decided to buy a new car at this company 4. to compete

because they offered the best … on my old model. 5. price policy

4. The … of this store are very beneficial for a customer. 6. credit terms

5. Their business will fail if they pursue unsound … . 7. set prices

6. The government usually … for public utility services.

7. In pure price competition the forces of … operate.

Helpful Words and Expressions

1. location – место расположения

2. to attract customers – привлекать покупателей

3. extra services – дополнительные услуги

4. installation services – услуги по установке

5. free delivery – бесплатная доставка

6. to charge prices = to set prices – устанавливать, назначать цены

7. to compete – конкурировать

8. price emphasis – продажа товара за счёт низкой цены

9. price de-emphasis – продажа товара не за счёт низкой цены, а за счёт других факторов

10. a loss-leader item – товар, продаваемый по очень низкой цене, служащий для привлечения покупателей

11. off-even pricing – цена, не доходящая до круглой цифры и стимулирующая желание покупателя купить

12. favourable psychological effect – благоприятный психологический эффект

13. to start with low prices – начинать с низких цен

14. a new brand – новая марка (товара)

15. a high quality expensive item – высококачественный дорогой товар

Task 5. Translate the following sentences into English.

1. Этот магазин предоставляет покупателям выгодные кредитные условия. 2. Товар имеет низкую цену. Она не покроет затраты. 3. Эта фирма ведёт неразумную ценообразовательную политику. 4. Прежде чем выпускать товар, необходимо изучить уровень спроса и предложения. 5. Правительство устанавливает цены на коммунальные услуги. 6. Магазин имеет удобное место расположение. 7. Универмаг предоставляет покупателям дополнительные услуги: бесплатную доставку, кредит, установку и т. д.

8. Новая марка товара привлекает покупателей. 9. Вам следует начинать с низких цен.

Task 6. Answer the following questions on the text.

1. What does the price depend on?

2. Why is it difficult to determine the right price?

3. What is a seller interested in the price?

4. In what way can prices be determined?

5. In what way are agricultural prices decided?

6. In what way are industrial products usually priced?

7. What prices does the government usually set?

8. What is important to know when dealing with pricing?

9. Why is everything related in price?

Task 7. Discuss with your partner the following problems.

1. In what way are prices usually charged?

2. What types of pricing policy do you know?

3. How can you attract customers?

4. What encourages sales?