MSMEs PRODUCT SELLING PRICING STRATEGY TO INCREASE PROFITS USING THE COST PLUS PRICING APPROACH

Anissa Tifanny Pratista, Rudi Santoso

Abstract

This research aims to examine and implement a strategy for determining the cost of production using cost plus pricing. The basic assumption of this research is that there are several MSMEs that still use conventional methods to determine the cost of production. The implication is that MSMEs have the potential to lose profits because the prices set are still far from actual profits. The application of the cost-plus pricing method in MSMEs can not only increase profit potential but also be used to promote products with price discounts. The research results show that there is a 640% increase in profits when MSMEs apply the cost-plus pricing method. In addition, at certain moments, MSMEs can provide discounts of up to 20% without losing profits. The limitation of this research lies in the scale of the object which is still small. Thus, this research cannot be generalized to be applied to different objects. However, this research provides recommendations for further research with larger objects, so that the differences can be seen.

Full Text:

PDF

References

Bastomi, M., Sudarmiatin, & Hermawan, A. (2023). Cost Volume Profit (CVP) Analysis As a Profit Planning Tool At Lay Cang MSMEs. Asian Journal of Management Enterpreneurship and Social Science, 03(02).

Caesar, M. R., & Haryadi, R. (2022). Innovation of Small Medium Micro Business Governance (MSME) Resilience Post-Covid-19 Pandemic in Bandung City. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 5.

Caro, F., Gürhan Kök, A., & Martínez-De-Albéniz, V. (2020). The future of retail operations. Manufacturing and Service Operations Management, 22(1). Retrieved from https://doi.org/10.1287/msom.2019.0824

Cheng, P., Lin, Z., & Liu, Y. (2021). Competing Selling Strategies in the Housing Market. Journal of Real Estate Finance and Economics, 63(3). Retrieved from https://doi.org/10.1007/s11146-020-09778-1

Cleary, R., & Chenarides, L. (2022). Food retail profits, competition, and the Great Recession. Agribusiness, 38(3). Retrieved from https://doi.org/10.1002/agr.21743

Djatmiko, T., & Pradana, R. (2016). Brand Image and Product Price; Its Impact for Samsung Smartphone Purchasing Decision. Procedia - Social and Behavioral Sciences, 219, 221–227. Retrieved from https://doi.org/10.1016/j.sbspro.2016.05.009

Farm, A. (2020). Pricing in practice in consumer markets. Journal of Post Keynesian Economics, 43(1). Retrieved from https://doi.org/10.1080/01603477.2019.1616562

Febriani, K. R., Marlian, S., & Yuliawati, J. (2023). Analisis Perhitungan Pokok Produksi dengan Menggunakan Metode Full Costing : Studi Kasus pada Apem Singkong Keju Pak Gede. Al-Kharaj : Jurnal Ekonomi, Keuangan & Bisnis Syariah, 6(2). Retrieved from https://doi.org/10.47467/alkharaj.v6i2.5293

Guerreiro, R., Cornachione Jr., E. B., & Kassai, C. R. (2012). Determining The ‘Plus’ In Cost-Plus Pricing: A TimeBased Management Approach. Journal of Applied Management Accounting Research, 10(1).

Guilding, C., Drury, C., & Tayles, M. (2005). An empirical investigation of the importance of cost-plus pricing. Managerial Auditing Journal, 20(2). Retrieved from https://doi.org/10.1108/02686900510574548

Guruh Ardana, Endah Dwi Kusumastuti, & Suryani, A. (2022). Analisis Perhitungan Cost-Volume-Profit (CVP) Sebagai Dasar Perencanaan Laba Pada UMKM Obot Fried Chicken. Indonesian Accounting Literacy Journal, 2(1). Retrieved from https://doi.org/10.35313/ialj.v2i1.3348

Hartanti, R. (2020). Apakah Cost Plus Pricing Masih Relevan Di Masa Covid19. Jurnal Ekonomi, 25(3). Retrieved from https://doi.org/10.24912/je.v25i3.686

Ingenbleek, P. T. M. (2015). Price strategies for sustainable food products. British Food Journal, 117(2). Retrieved from https://doi.org/10.1108/BFJ-02-2014-0066

Ingenbleek, P. T. M., & van der Lans, I. A. (2013). Relating price strategies and price-setting practices. European Journal of Marketing, 47(1). Retrieved from https://doi.org/10.1108/03090561311285448

Liang, W., Zhou, D., Rizwan, M., & Huseynov, S. (2023). How price labeling strategy affects consumers’ purchase intention? The role of perceived price difference in price assessment. Asia Pacific Journal of Marketing and Logistics, 35(11). Retrieved from https://doi.org/10.1108/APJML-11-2022-0917

Mahmudah, S., & Meirini, D. (2021). Cost Volume Profit Analysis as a Profit Planning Instrument. BALANCE: JOURNAL OF ISLAMIC ACCOUNTING, 2(01). Retrieved from https://doi.org/10.21274/balance.v2i01.4723

Natalia, P., & Mulyana, D. M. (2014). Pengaruh Periklanan Dan Promosi Penjualan Terhadap Keputusan Pembelian. Jurnal Ilmiah Manajemen Kesatuan, 2(2), 119–128.

Padmini, S. V. (2019). Performance and Prospects of Small Scale Enterprises in India-A Macro Economic Study. AMBER–ABBS Management Business and Entrepreneurship Review, 10(1).

Porter, S. S., Wiener, J. L., & Frankwick, G. L. (2003). The moderating effect of selling situtation on the adaptive selling strategy - Selling effectiveness relationship. Journal of Business Research, 56(4). Retrieved from https://doi.org/10.1016/S0148-2963(02)00440-X

Prabowo, A. Y., & Salim, A. (2023). Strategy Analysis of Product Selling Prices and Product Quality on Purchase Decisions and Its Impact on Wuling Confero LMPV’s Customer Loyalty in Jabodetabek. Dinasti International Journal of Economics, Finance, and Accounting, 2(6).

Putri, A. U., Meiriasari, V., & Djuita, P. (2022). Penerapan Metode Cost Plus Pricing Dalam Keputusan Penentuan Harga Jual (Survey Lambemu Kota Bengkulu). Jurnal Ilmiah Ekonomi Global Masa Kini, 13(2). Retrieved from https://doi.org/10.36982/jiegmk.v13i2.2684

Ramli, Y., Firdaus, I., Arief, H., & Setiawan, M. (2019). Mobile Marketplace As a Medium for Selling Micro Small Medium Enterprise Products. Iccd, 2(1), 55–59. Retrieved from https://doi.org/10.33068/iccd.vol2.iss1.209

Santoso, R. (2020). Review of Digital Marketing & Business Sustainability of e-Commerce During Pandemic Covid-19 in Indonesia. Jurnal Ilmu Ekonomi Terapan), 5(2).

Santoso, R., Erstiawan, M. S., & Kusworo, A. Y. (2020). Inovasi Produk, Kreatifitas Iklan Dan Brand Trust Mendorong Keputusan Pembelian. Jurnal Nusantara Aplikasi Manajemen Bisnis, 5(2), 133–145. Retrieved from https://doi.org/10.29407/nusamba.v5i2.14369

Santoso, R., Erstiawan, M. S., & Soebijono, T. (2023). Digital Economic and Financial Inclusion for Economic Recovery in Indonesia. International Journal of Economics, Business and Accounting Research (IJEBAR), 7(3).

Serenade, V., Ulfa, M., Lailiyah, N. I., & Mardiani, N. (2023). Analisis Penentuan Harga Pokok Penjualan Sepatu Thrift Singapura by Lix. Jurnal Informatika Ekonomi Bisnis. Retrieved from https://doi.org/10.37034/infeb.v5i1.214

Singh, R., Sarangal, R. K., & Singh, G. (2022). The Impact of Micro and Macro Environment on Entrepreneurial Success: Case of J&K MSMEs. FIIB Business Review, 11(1). Retrieved from https://doi.org/10.1177/23197145211061809

Tiara, T., Maulidia, Y., & Kantun, S. (2023). Pricing Evaluation Using The Cost-Plus Pricing Method at CV Macarindo Berkah Group in Jember District. RIGGS: Journal of Artificial Intelligence and Digital Business, 2(1). Retrieved from https://doi.org/10.31004/riggs.v2i1.52

Usman, S., Bawole, R., Rahayu, M., Tururaja, T., & Matulessy, M. (2022). Total Cost Dan Net Profit Margin Usaha Abon Ikan Madurasa Provinsi Papua Barat. JURNAL NUSANTARA APLIKASI MANAJEMEN BISNIS, 7(1). Retrieved from https://doi.org/10.29407/nusamba.v7i1.16486

Vojteski-Kljenak, D., Lukić, R., Gavrić, G., & Gavrilović, M. (2019). The operative profit margin and interest cost in retail food. Ekonomika Poljoprivrede, 66(3). Retrieved from https://doi.org/10.5937/ekopolj1903799v

Wang, D. P., Zhou, Y., & Ge, G. H. (2021). Advance selling strategy and return strategy considering reference price effect and consumers behaviors. Kongzhi Yu Juece/Control and Decision, 36(11). Retrieved from https://doi.org/10.13195/j.kzyjc.2020.0351

Zhang, C., & Nik Azman, N. H. B. (2023). The Impact of Debt Financing on Startup Profitability. Business Management and Strategy, 14(1). Retrieved from https://doi.org/10.5296/bms.v14i1.20842

Zhang, W., Zhang, Y., Pu, X., & Wang, Z. (2023). Optimal pricing strategy for new products considering reference price effect in advance selling. RAIRO - Operations Research, 57(4). Retrieved from https://doi.org/10.1051/ro/2023102

Refbacks

  • There are currently no refbacks.