Price formation in trade companies

Abstract

A trading company should be viewed as a complex system of organization that operates in a dynamic and multi-conditioned business environment, with the aim of creating economic value for its owners and for the consumers themselves. Constant changes in the environment determine the opportunities, dangers and limitations for trading companies. Therefore, it is necessary for a trading company to precisely define and at the same time realize a number of goals that are mutually compatible and integrated. Since the company is established for the purpose of achieving certain economic and other goals, all procedures, activities and activities of the company and all holders of functions in the process of its business are goal-oriented and oriented. From the point of view of creating the sales policy of trade companies, the margin is of special importance, as the difference in the price that the trade adds to the purchase price in order to cover its costs. Regardless of whether the margin is administratively determined or is formed freely, sales prices are different. This means that, in the system of free margin formation, trade independently determines the difference in price, starting from business costs, planned profit and market conditions.