Lesson 3 pricing

Words to master:

Credit terms - кредитні умови

Trade-in allowance - сума грошей, яку віддали за попередню покупку і врахували нову

To cover costs - покрити затрати

To pursue unsound price polices - проводити нерозумну ціноутворюючу політику

Supply and demand - пропозиція і попит

Price competition - конкуренція в ціноутворенні

To set prices - встановлювати ціни

Read and translate the text:

Pricing

All products and all 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 or too low to cover costs. No other area of marketing operations has been a subject to bad practice. Many 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 on meat, cotton and other agricultural products can be decided in a large central market where forces of supply and demand exist. This is pure price competition. The prices of industrial products (iron, steel, etc.) are usually decided by large companies. As a rule the amount and price of goods sold to a large number of buyers are 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 by price, since the consumer can buy and must pay for everything out of a particular, limited amount of money.

Find English equivalents to the following word combinations:

1. Мати ціни

2. Залежати від різних факторів

3. Важко визначити ціну

4. Вести нерозумну ціноутворюючу політику

5. Визначатись різними шляхами

6. Існують пропозиції і попит

7. Промислові товари

8. Ціни встановлює уряд

Complete the sentences:

1. The price depends on …….

2. The price may be too high to …..

3. Many businesses pursue …….

4. Can be decided in a large central ….

5. The amount and price of goods ……

6. If demand increases …….

Make up dialogues using the text.

Answer the questions:

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

2. Why is the seller interested in the price that produces the highest volume of sales at the lowest unit cost?

3. In way are agricultural prices decided?

4. Why does the government usually set the prices for public utility services?

5. Why is everything related by price?

Try your best in representing the back translation of the text.