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What is the best pricing policy (invoice price, discount) to customers to implement for FMCG company that sell products in the kingdom wide of KSA.

The options are:1- Apply standard price to all customers with reasonable trade margin for the customer with exceptional discounts to class A customers.2- Apply standard price to all customers with reasonable trade margin for the customer with a different discount rate for each class.3- Apply standard price to all customers with reasonable trade margin for the customer with a different discount rates for class B & C.4- Apply a selling price which is higher than the standard to some outstation customers who are accepting this high price.5- Feedback on the discrimination between customers in pricing in the same class.

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Question added by Ezzidin Ibrahim , Financial Controller , Karim Food Industries
Date Posted: 2014/05/09
Sherif Mansour CMA
by Sherif Mansour CMA , general finance manager , Scape Restaurant & Lounge - Burj Al Arab

Pricing policy effects by the market the company operate .

Locally pricing also different from outside(export pricing)

However if you operate in a market that given pricing taker like food, beverage, you have to follow the market and you cant control of the price, but you can decrease your cost and cooperate with market and sales division to make Target cost.it will be very beneficial and sure maximize profits.

2-if you  sold outside there is an analysis to decide the best price and always be cheaper than local price in the same goods.

3-For local customers you can classified them and give a special price to big customers without influence your profit. This well done by marginal analysis.

 

Thanks

Alaoui abdallaoui  Youssef
by Alaoui abdallaoui Youssef , Unit Manager , VARUNBEVERAGES MORROCO "PEPSI

En principe on doit appliquer le prix standard à tous les clients qui se trouvent regrouper dans la même zone. L'exception peut être faite pour ceux qui ont un potentiels permanent en terme de volume. Aussi, il faut être prudent pour ne pas perturber la marché et par conséquent perdre des clients au profit de la concurrence.

Nelson Mabote
by Nelson Mabote , General Receptionist/ Administration , Toyo

Apply the standard price to all customer with reasonable trade margin for the customer with different price discount rates for classes b&c.is the correct option.

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