Strategic Pricing of Bee Products from the Ruse Region

Authors:

Pages: 76-85
DOI: https://doi.org/10.54664/ZSFJ7391

Abstract:

The study reveals that in the context of global competition in supply, limited demand, and product parity in the B2B and B2C markets for bee products, there are significant limitations on the applicability of cost pricing methods (cost and desired profit) and partly of demand-based methods. In addition, the study shows that the most applicable pricing methods are the ones based on competition. Regional honey, the main product of beekeeping in the Ruse region, has a negligible differentiated value (monetary and psychological) in the B2B and B2C markets compared to its competing counterparts, due to which its price fluctuates around its market price. The lack of product differentiation, as well as established regional image and brand nowadays, do not allow producers to achieve prices higher than the market ones. Beekeeping farms in the Ruse region should build horizontal and vertical strategic relationships to gain price leadership through low costs and high quality. Value communication is necessary to protect the value and importance of regional bee products from competitors. This should be done by increasing the willingness of customers to pay a higher price for them. The pricing policy of beekeeping farms defines the general price behaviour based on the achieved differentiated value of the regional bee products and its continuous increase. The formation of regional bee products with high added value has a decisive role in the positive perception of the price by the different segments, due to which they reach higher price levels.

Keywords:

pricing; costs; desired profit; demand; value

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