The Classification of Enterprise Services for the Purposes of Practical Application of the CVP-model in Price Determination

• Main Author: Malikov Volodymyr V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2018-03-01
• Series: Bìznes Inform
• Subjects: calculation; CVP-model; services; price; classification
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2018-3_0-pages-425_428.pdf

The two-tier classification of enterprise services has been proposed, allowing to consider their peculiarities at application of the CVP-model in practice: 1 level – dividing of services by the attribute of standardity in standard and non-standard; level 2 – dividing of services by the order of price determination. In particular, it is proposed to divide standard services into the services, the price (tariff) for which is set per unit of measurement; the services, the price of which is set for each type of service; the services, the price of which is set for one visit or for the time of its rendering (for example, an hour or a minute); the services for which a subscription fee is charged according to the calculation for a certain period of time (usually a month); the services, the price of which is set as entrance fee. In turn, the author suggests to divide non-standard services in the services, the price of which is determined by using the formula «costs plus profit»; the services for which a fixed price is determined; the services, the price of which is determined depending on the positive effect that the customer receives. The application of the classification proposed by the author will allow to use the principles and methods of the CVP model with maximum efficiency, taking account of the specificity of the range of services provided.