Pricing, costs and profit in food retailing. Preliminary communication

Buzás, F. E. (2003) Pricing, costs and profit in food retailing. Preliminary communication. Acta Alimentaria, 32 (1). pp. 95-101. ISSN 0139-3006

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Abstract

Viewed from a theoretical-economic approach, the consumer price contains the costs of production, processing and trading, as well as the profit share related to these activities. In practice, particularly in the food sector, this kind of linear accumulation has rarely succeeded. In the case of foods, due to a decrease in consumption and vertical competition, not only the profit share, but often some of the costs could not be made good either in the selling price. This failure has an impact on agricultural producers and the food industry, whereas in commerce, the profit-need could be realised easier. In the formation of a food consumer price there are diverse practices in use from the simple markup pricing method to the complex marketing strategies-based price-forming. This paper presents the results of price analyses done in the course of food retail activity investigation.

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