<b>Pricing management in small companies through Direct costing and the Monte Carlo method</b> - doi: 10.4025/enfoque.v26i3.4872

Abstract

Among the strategies related to cost management are those relating to the formation of retail prices, whichare fundamental to the success of any company in the market in which it operates. Consequently, this articleaims to identify and discuss some existing pricing models, and implement a pricing model that featuresdevelopments and characteristics so that the variations meet the sales and profit goals set by the company.Thus, this study presents the direct costing model in the process of price formation in the supermarketsector in the Greater Vitória area (Brazil). In the pricing method, the use of the Added Cost Pricing methodwas considered. It acts as a facilitator in the pricing of goods by using direct costing for companies that workwith many items in their inventory and do not have an adequate system of cost allocation. Considering thatthe process of price formation is based on estimates of future results, such as demand volume, the riskfactor was included in the study. The inclusion of risk is present in the simulation process through the MonteCarlo method, allowing for a distribution of probability for the average standard margin, as well as a sensitivityanalysis of in relation to cost structure. Sensitivity analysis also permits the formulation of strategies toreduce costs and identify the variables that most influence the selling price formed by the methodology ofdirect costing, as developed in this work.