PRICING PROCESS FOR CERAMIC PRODUCTS IN THE CENTRAL REGION OF RONDÔNIA WESTERN AMAZON / BRAZIL

Abstract

Setting prices and pricing strategically make a big difference, as one situation is to react to market conditions and another is to manage them proactively.  Determining pricing is a tactical decision, while strategic pricing is the coordination of interrelated marketing, competitive, and financial decisions maximizing the process. A field research was carried out with 20 (twenty) ceramics, with the objective of understanding the policies, strategies, tactics and costs in the pricing of products from the central region of Rondônia – Western Amazon/Brazil. The methodology adopted was a descriptive and exploratory research, using non-participant observation, with a quantitative and qualitative approach, where semi-structured interviews and questionnaires were used as data collection instruments. It was identified that the strategies and tactics in ceramics are aimed at granting discounts and reducing the price; they do not have a product positioning policy; price based on competition; have difficulties in controlling costs; they disregard depreciation. Another problem to be considered is that 95% of ceramics have outsourced accounting, which is justified by the low price of the service provided, which evidences the reduced use of internal management accounting. For 80% of the ceramics that participate in the meetings, there is a disparity between the contribution that these meetings bring to the pricing process, there is no uniformity in the prices charged, there is competition for market share and according to the description of the potters themselves, 75% classify themselves as market followers. There is little use of the break-even point for decision-making on product pricing.