Pricing approach at planned economy: spent money, they wrote off the costs, divided these costs by the number of products released. To what turned out, a percentage of profitability was added "by eye", and the price tag that was drawn was put on the counter.
If a product is not bought at such a price (the price is unreasonably high), then we give the consumer such a salary so that he can do it. But we provide this wage increase not at the expense of the received price (profit), since it cannot do this (it is high for the consumer), but with another source - a bank loan.
In turn, an increase in wages entails an increase in costs, and costs lead to an increase in the final price. And again, everything is in a circle: in order to ensure consumer demand for these goods, we raise wages to the consumer.
Thus, toxic credit indebtedness of the producer is generated and accumulates (with which it ensures wage growth) to banks. But everyone is happy. It turns out that the loan debt in this scenario is constantly, from year to year, shifted to the next generation in order to live well today.
The approach to pricing in a market economy: we spent money, wrote off costs, divided these costs by the number of products produced. Next, we sell these products at the price at which the consumer can buy them. If we make a loss after the sale (the costs do not fit into the selling price), then we reduce costs or close the activity and look for a new business that will avoid such mistakes and earn money at the expense of profit.
Thus, flexible diversification and cost management do not allow the generation and accumulation of toxic credit indebtedness of the manufacturer to banks.
Under a market system, the current situation encourages production to work at the expense of self-sufficiency, search and implementation of demanded areas of activity, and in no way shifts the negative fruits of its activities to the next generation. The market does not allow loans to grow unreasonably. We live, so to speak, within our means, and money comes from how we can and want to work.
Thus, the prerequisites for a financial and economic crisis in a planned economy are much higher than in a market economy. Because the banking sector is the main cause of economic shocks when reaching the point when it is necessary to write off toxic loans (which are not returned) for their losses, so that, so to speak, the balloon bursts. And such a situation arises in conditions of acute shortage of money (high interest rates due to high inflation), when banks need to repay debts.
Today, cost calculation in business should not play the role of pricing (as in a planned system), but contribute to an objective assessment marginality of products in order to make economically correct and informed decisions.
Pricing should be based on a financial and economic business model that takes into account all macro- and microeconomic factors and allows you to understand how prices dictated by the market affect the overall economy, due to which it is correct to regulate the pricing process by product type.
