Икономика и компютърни науки (Jun 2022)
Formation and realization of a competitive pricing strategy of construction companies in a dynamic economic environment
Abstract
Construction companies are in a highly competitive and rapidly changing market environment. In such conditions, it is especially important that they have a stable pricing strategy. The goal we set in this article is based on a derived and updated concept of pricing strategy of a construction company, to make an analysis based on data from a survey and to propose a model for pricing of these companies. Theoretical analysis of basic concepts of pricing and pricing strategy in construction has been performed. A survey is conducted among construction companies in Bulgaria in the period February 2022 – April 2022. The scope of the study includes 101 construction companies from all over Bulgaria, engaged in various types of construction activities. Issues related to the pricing strategies and pricing methods used by the surveyed enterprises are analyzed. Based on the results obtained from the construction companies participating in the survey, possible factors influencing the choice of pricing strategy are considered. A proposal is made for a new pricing model based on market approach and the value of prices in construction. The results of the study and the proposed model are useful for construction companies that seek to improve their pricing processes, increase their competitiveness and profits. The construction investment market it is constantly changing. Through the proposed model, construction companies can: differentiate their prices according to their customers; combine the advantages of a cost-based and market-based pricing approach; easier to monitor their competition; anticipate unforeseen events, such as competitive threats and technological change. The dynamic processes are dictated by the great competition, the multitude of consumers, the technological changes, global policies and economic environment. Under these conditions, the pricing of construction products cannot be oriented only to cost, quality and efficiency at work. To be easily adaptable, construction companies need to orient themselves towards creating values for their customers and to use new pricing models based on this.
