Pricing Approaches for Investment Companies

Document Type : Original Article

Author

Assistant Professor, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran (Corresponding Author)

Abstract

The main business of an investment company is to hold and manage securities for investment purposes. In today competitive market Pricing and its methodology are complicated motions. It is very important to define a price that can prevail the competition in an open and free market. In order to define the price certain circumstances should be considered. In the academic arena there have been several strategic aims defined for pricing that each follow definite procedure. But in reality those course of actions are not competent for all the conditions. Therefore it is vital to develop a model that is based on academic research and past experience. One of the most growing markets in the developing countries is subcontracting big projects this is usually a very competitive market and it is done by putting to tender. It is obvious that the organizations which tend to join the bid have to provide two basic package. First the technical offer pack and second financial offer pack, these two packs are inter-related. In order to define a systematic procedure that help the organization to win the competition it is necessary to develop a model which coordinate both part to come up with a competitive offer.
In this article in order to help the organization to define competitive price academic pricing literature and past experience are both considered. This model will assist the organization to define strategy, approach and price that could win the tender.
 

Keywords


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