In today’s market economy, it is not easy to estimate the value of price fixing. Prices give you the opportunity to determine the structure of production, you influence the company’s cash flow and determine profitability. Proper pricing tactics are the basis for the success of any company, especially in the foreign market.

As you know, the price is called a monetary expression of the value of a product or service. It depends on the situation in the market – on supply and demand. It is widely accepted that these factors influence price formation.

Consider more about the concept of price demand and under what conditions it is formed.

What is the demand price

The demand price is called the price at which the potential consumer is able to buy the product. This demand price is the so-called buyer’s market.

Price demand is created by consumer pricing methods. It is considered that the consumer himself should determine the value of the product or service by analysing not only its quality but also the size of the marketing strategies used to promote the product or service and its image on the market.

In order for the demand price to be qualitatively formulated, the manufacturer must ensure that the goods or services offered for a range of quality are differentiated. This applies to both technical and consumer.

Price demand depends directly on customers. If the value of your product or service doesn’t match the target customer you choose, don’t expect a profit.


To determine the volume of the demand price, experts perform a number of actions. Among them:

determining the optimal volume of production costs compared to the current market situation; Determination of the quantities of products produced and the needs of the market in order to determine the objectives; Analysis of the price competitiveness of a product or service; analysis of the solvency of the target group.

The price of a product or service depends directly on the demand for it. The higher the demand, the higher the price should be, but it is important to monitor its optimality.

The timing of the demand price is also an important factor in determining the demand price. The point is that the analysis of the needs of the product or service should be carried out as often as possible and adjust the volume of the demand price. This is due to the persistent global instability and competition.

What influences prices

depends on many factors, both external and domestic.

In its definition should take into account:

company goals; Marketing methods for promoting the product; solvency of the company and the CA; Production costs the current level of demand for the product of the company and its competitors; Usefulness of the add-on service product or service (which may affect demand for goods or services other than the same, i.e. related purchase services). The development of demand prices is also influenced by seasonality, global political developments, the macro- and micro-economic position of companies.

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