Pricing strategies in the furniture sector of Santa Maria (RS, Brazil)
DOI:
https://doi.org/10.4013/4292Abstract
Given the importance of correctly determined product prices, either for the firms and their controllers or for the theoreticians who work on the subject, this research aims to study the strategies of pricing determination of furniture companies in the city of Santa Maria (RS, Brazil). The study aims to provide a critical analysis of economic theories that discuss about pricing determination, focusing on the controversy between theoretical and practical fields. To reach the proposed objectives, questionnaires were sent to businessmen of furniture factories located in the city. The results indicated that managers in the industry determine the prices of their products based on manufacturing costs. That is, they observe the manufacturing costs and add an edge (Mark-Up), thus forming the price of selling. Therefore, it was evidenced the applicability of the theory of total cost presented by Hall and Hitch (1939), since the businessmen do not determine the prices according to the equality between prescription and cost delinquent, as the neoclassic affirmed , but they observe productive costs and, from them, determine the prices of the products.
Key words: strategies, prices, costs, furniture industry.
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