Studies On The Pricing System Of New Program In DD Company

At present, the amount of car ownership and population ratio is still very low, the Chinese auto parts enterprises still have plenty of room for development. DD Company with a long history of development and which leading auto parts market will have more new projects offer opportunities. Quotation needs more accuracy, reasonable. Moreover, by looking at project products pricing in the project-related books or publications in inland and abroad, we found that the project products pricing theory is less.Based on the above factors, we want to through DD Company's new products pricing system as a case study; summarized DD Company's new project products pricing system. And analyzed DD Company's new project pricing system, found its weaknesses, and made specific practical recommendations for improvement. The end results of this study those are, improving DD Company's new project products pricing system as the practical significance and providing more references about the project industrial pricing theory as theoretical significance.Firstly, from the legislative point of view and the theoretical level, we introduce the relevant laws and regulations about pricing, and the basic theory of pricing, pricing methods, and DD Company's new project pricing flexibility.1. The legalization process was briefly reviewed, from a planned economy to a market economy, the price gradually from control to decontrol and the price-related laws and regulations have improved. Understanding of the price process of the rule of law, especially when the price of legal status, so that we firstly consider the laws when pricing to ensure the legitimacy and stability of pricing; 2. Different stages of economic development, such as the classical economics, neo-classical economics and new classical economics, the existence of pricing-related genre and its main points. Such as, Adam Smith's "invisible hand" of market theory, and "Chamberlain Revolution", "Keynesian Revolution" and the "expected revolution," the so-called three major revolution, and an Chinese-Australia, Xiaokai represented by a group of economists using modern analytical tools of classical economics, trends resurrection;3. The basic theoretical knowledge about pricing. The basic principles of pricing are economic, competitive, feasibility, integrity, scientific; pricing basic objectives: profit, sales, market share and price stability; specific pricing methods: cost-oriented, demand-driven and competition-oriented. Basic theory of pricing we analyzed and determined DD Company's new project products pricing method. DD Company is usually the company will choose the profit-oriented cost-oriented pricing. Sometimes, however, DD Company's will take competitive pricing in order to suppress rivals to stable market share.Second, we summarized and analyzed DD Company's new project products pricing system.1. We introduced the details of DD Company's new project product pricing processes from quotation for the new project to quote to the customer finally, as well as product pricing departments in the new project pricing system in the specific work required to complete the content;2. We introduced the cost detail in the Finance Model and DD Company how to reduce the costs with the management tools which used commonly in the foreign-funded enterprises, such as 5S, 6Sigma, 5Why, fish-bone diagram, brainstorming; 3. We have also introduced the DD Company changed pricing strategies to recover only variable cost for new projects in the global financial crisis period, the actual effect of scale to reduce the unemployment rate employees; and turns to enter in harness for construction equipment vehicle market to access to economies of scope; taken a lot of buying standard uniform bellows and cure outside in the secondary processing plant and ask the processing plant provide the bellows JIT to obtain the high discounts and zero inventory.Third, by observing DD Company's actual process of new project products pricing, we found that the DD Company's pricing system for the new project had some weaknesses as following:1. In the new project products pricing system, the lack of incentives;2. In the new project product pricing system, there are no vendor management requirements in respect of the assessment;3. In the new project product pricing in financial model the input data is not standardized;4. In the new project product pricing in financial model, the depreciation methods and depreciable lives of fixed assets do not meet the actual situation.As the weaknesses in DD Company's new projects product pricing system, we put forward concrete and practical recommendations for improvement. Specific recommendations are as follows:1. As the lacks of incentive mechanism we propose that DD Company establishes their own incentives, including the establishment of new business incentives and cost-saving incentives. The establishment of new businesses to obtain the incentive mechanism will help win more new business and the establishment of cost-savings incentives will reduce the procurement costs of enterprises to ensure and improve enterprise profitability;2. DD Company's new project products pricing system doesn't have management of the relevant supplier evaluation, the DD Company in order to improve the DD Company's pricing system, while reducing product cost pricing, we recommend the establishment of supplier assessment committee;3. When DD Company is running the new project products pricing in financial model the input data is not standardized and doesn't have database, we recommend that DD Company create a new pricing system for the project database to improve the accuracy of new project products pricing also facilitate to follow-up and analysis the project;4. In the financial model of DD Company's new projects products pricing, the depreciation methods and depreciable lives of fixed assets does not meet the actual situation, we propose DD Company changes its method of depreciation of fixed assets and depreciation period to obtain the tax baffle, reduce the financing pressure and expedite the fund refluence;In the end, the above pairs of DD Company's new pricing system for the project summary and analysis, we obtained the following main conclusions:1. Chinese legalization of pricing will have a long way to go. The pricing of the relevant laws and regulations are more, but not be systemic; specific provisions are vague not easy to implement. We should pay attention to the new laws and regulations relevant pricing to ensure that product pricing starting point for the legitimacy and stability.2. In a number of pricing theory and methods, cost accounting is still the basis of pricing; profit maximization is to determine the output and price are still the ultimate goal. DD Company new project products pricing process belongs to the project-based industrial pricing, pricing period is long, the price elasticity of demand is less, it is also taken in order to profit as the goal, the specific cost-oriented pricing.3. In practical DD Company specialize in using flexible management tools to reduce the price of the key cost factors effectively. Such as: use fish-bone diagram and brainstorming to find the root causes; follow the DMAIC model and "five-step method" principle to carry out business process improvement and eliminate the complex management processes in the waste effectively; through the 5S management and precision production to reduce labor hours and increase labor productivity.4. By DD Company's specific application of observing the micro-economics basic theories: economies of scale, economies of scope and associated economies, we find that economies of scale to support enterprises to expand production scale to implement horizontal integration of production, economies of scope to support enterprises to diversify production, and associated economic supports the vertical integration of production enterprises.5. We found that DD Company's new project products pricing system had some weaknesses, such as: lack of the incentives system and supplier evaluation management, quotation data is normative, fixed assets depreciation methods and depreciation lives don't meet the actual situation. So we made recommendations to improve the DD Company's project products pricing system.