Objectives are pricing policy

‡ Initially focuses on survival and assured existence in all product lines ‡ Firms have a predetermined target about return on investment ‡ Enables price stablilisation for certain period of time

Cont..d
‡ Gradually looks over making money after proper market hold ‡ Firms usually set up a service motive and welfare approach ‡ Has a deep look up over the rivals entry in the market

Pricing methods
‡ Cost plus pricing are interrelated that adds values to the final amount ‡ Going rate policy ensures pricing without carrying out rivalry in market ‡ Administered prices inculcate government intervention at the entry level

Factors involved in policy making

‡ COSTS holds prime factor at the base data collection ‡ Demand and consumer psychology influence the market preferences ‡ Aiming over future profit is the core ideal approach ‡ Government influence carries a major factor in policy making

Dual Pricing
‡ Determines certain output of a commodity being procured by government ‡ Involves fixing of procurement price ‡ Determines free sale quantity to be sold by producers in market

Problems in dual pricing

‡ Identifying commodity to bring under the system ‡ Determining procurement price ‡ Organising efficient distributive system