PRICING STRATEGY IN THE ROAD INDUSTRY: THEORETICAL FOUNDATIONS AND PRACTICAL ASPECTS
Abstract
Objective. The pricing strategy is a critical aspect of any business, including the road industry. This paper examines the theoretical foundations and practical aspects of pricing strategy in the road industry. The study explores the essence of pricing and pricing strategy in road enterprises, the methods used to determine the price of road works, and the peculiarities of estimating costs to cover risks when calculating the value of road works. The purpose of this research is to identify the main factors influencing the pricing strategy of road enterprises and to propose recommendations for improving the pricing strategy. Methods. The research methods used in this paper include a literature review, analysis of statistical data, and case studies. The study found that pricing strategy in the road industry is influenced by factors such as market demand, competition, cost of production, and government regulations. Results. The most commonly used pricing methods in the road industry include cost-plus pricing, value-based pricing, and target costing. Estimating the costs to cover risks when calculating the value of road works is crucial for ensuring the profitability and sustainability of road enterprises. The practical significance of this research lies in providing road enterprises with a comprehensive understanding of pricing strategy and its importance in the industry. The research findings can help road enterprises develop effective pricing strategies that balance the interests of stakeholders and contribute to the development of the road industry. In conclusion, this paper provides an in-depth analysis of the theoretical foundations and practical aspects of pricing strategy in the road industry. The study highlights the importance of pricing strategy for the sustainability and profitability of road enterprises and provides recommendations for improving the pricing strategy. Further research can be focused on exploring the impact of emerging technologies on pricing strategy in the road industry and developing pricing models that account for environmental sustainability.
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