PROBLEMS OF PRICE FORMATION FOR FOOD PRODUCTS

Abstract

This article examines the main problems involved in forming prices for food products, using the production of chuchvara (traditional dumplings) as an example. It considers the principal components of production costs, including raw materials, utility expenses, labour costs, taxes, and the producer’s profit. The article also discusses how market conditions, competition, product quality, and the shadow economy may affect the final selling price. Particular attention is given to the importance of accurate cost calculation and communicating product value to consumers through quality, hygienic packaging, and marketing. The example illustrates the need to consider both production expenses and market factors when determining a competitive price for food products.