Pricing Management Taking in Account the Core Competencies for High-Tech Industry Sustainability Support

Abstract

The authors suggest the method of calculating the optimal rate of profitability of gross income taking into account the elasticity of demand on aerospace product market. The developed method allows to calculate the optimal rate of profitability, ensuring, on the one hand, the competitiveness of products by price, and on the other hand, the income of enterprises, which can be invested it its innovative development. It is shown in the article that it is convenient to plan the maximum profit from sales of products in vertically integrated corporations during transfer pricing and then to distribute to suppliers. In this case, the state budget also receives the maximum tax revenues.

The chapter presents a model for calculating optimal rates of profitability of gross income given wholesale components cost for the parent company in terms of elasticity of demand; an example of calculating the optimal rate of profitability of gross income; non-linear tax mechanism for controlling the growth of prices of suppliers, that are not involved in a vertically integrated corporation.