enterprises

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Abstract

The artisan activity has turned some areas of Ecuador into

of growth. In the research, the incidence of pricing in the

financial results obtained in the last year is analyzed, with

information provided by the artisans through the

application of research techniques and supported by the

theoretical framework. The analysis of the results allowed

to know the incidence of the variables pricing and

commercialization in the behavior of the financial results,

making necessary the application of a simple method for

the accumulation of costs, which allows a decision of prices

according to the characteristics of the sector.

madera. La experiencia del artesano es hegemónica a la

tecnificación, sin embargo, estas unidades productivas no

han establecido lineamientos que permita al artesano tener

un claro panorama financiero, que reflejen la realidad de

fabricar muebles de madera, limitando a los productores

una visión futurista de crecimiento. En la investigación, se

lilimtt10@hotmail.com https://orcid.org/0000-0003-1740-6755

técnicas de investigación y sustentada en el marco teórico. El análisis de los resultados

permitió conocer la incidencia de las variables fijación de precios y comercialización en

el comportamiento de los resultados financieros, haciendo necesario la aplicación de un

método sencillo para la acumulación de costos, que permita una decisión de precios

acorde a las características del sector.

Palabras clave: Fijación de precios, comercialización, utilidades

INTRODUCTION

Similarly, the improvement of the production process and the variety of designs have

been key factors for the development of activities, making manufacturers more

committed to their work. However, increased competition and the inadequate use of

costing techniques have brought the following problems to the sector:

A contraction in sales as a result of the economic recession, which has had a direct

impact on sales results. Inadequate pricing system without a technical study or pricing

formulas that guarantee the recovery of production costs. Overvalued or undervalued

production costs. The marketing of wood furniture is not related to product demand,

making it difficult to maintain a competitive advantage by wasting installed capacity and,

in other cases, overproducing without considering an operational break-even point,

on this decision".

The Craftsmen's Defense Law states in its first article that craftsmen are protected to

assert their rights personally or through trade associations, unions and interprofessional

associations in any of the branches, arts, trades or services. It also defines important

Artisanal production units are all organizations or workshops that manufacture goods

or services that are handmade or that in their production process 70% involve the skills

of the workshop master, operator and apprentices. The characteristic that differentiates

"The pricing process represents one of the many issues that are fundamental to

organizations. It is taken in this way because it is one of the most complex obstacles

faced by management bodies. The operating income in the income statement, will be

it indicates that there are multiple methods or strategies for pricing and the marketing

and finance departments are in charge of finding the most optimal one.

The strategy of setting a target oriented to the expected return establishes a specific

level of profits as a goal. Many companies seek a stable yield, which is set according to

the characteristics of each company and has managerial advantages in large companies.

The fixation strategy with "the sales-oriented objective tries to reach some level of sales

or market share without relating to profits, many companies are more interested in sales

growth than in the level of profits. "Market share objectives are very frequent, they are

based on the premise that the higher the volume of sales in the future, the greater the

justice to sacrifice profits in the short term. (Viteri et al., 2018, p. 21) In other words,

the product is sold at the same price and with the same sales conditions, and the other

is random discounting, which is the reduction of the price at any time. This strategy

involves selling in large volumes in such a way that the yield is not in the profit margin

but in the quantity sold (Pérez, 2006, p. 7).

Starting from the product "Crafts is a truly economic activity and the core of the

development process is marketing. The customer does not buy out of a sense of

quality of the product. In addition, the incidence of the product life cycle must be

considered; at the beginning of the product life cycle prices tend to be high as a

consequence of the existence of a single seller, but as competition increases prices tend

to decrease." Therefore, the variety of products that the workshops offer to the market

will have a greater impact on the level of income, directly affecting their financial

situation. As a result of the above, product differentiation factors must be established,

which are framed in aspects such as quality, variety of products, designs, shapes, payment

facilities, delivery facilities and the acquisition of such products. (Rica et al., 2010, p. 30).

A second factor is the distribution channel of handcrafted products, specifically wood

furniture for the home, it is important to determine how the product leaves the

indirectly from the manufacturer through the intermediary to the final consumer, as

summarized below (Pérez, 2006, p. 23).

"From the point of view of finance, the branch of financial management gathers most of

the approaches of economic theory and adapts them with a simple algebraic

development and the same two basic objectives: the maximization of profit and the

maximization or increase of income..." Having a control over the financial situation and

results of the company allows the management an optimal control and decision making,

as well as having a clear awareness of production costs, and consequently a pricing more

in line with the reality and the environment where companies are developed (Cadena,

2017, p. 10).

of income and, consequently, the profit margins. ( 2005, p. 13).

Non-operating revenues are values that correspond to sales of goods or services derived

from or complementary to the business, without being the main activity of the company.

"It is defined as the value sacrificed to acquire goods or services that is measured in

dollars by reducing assets or incurring liabilities at the time benefits are earned. At the

time of acquisition, the cost incurred is to achieve present or future benefits. When

The operating margin is of great importance because it reflects whether or not the

business is profitable regardless of how it has been financed, since this margin is

influenced by the cost of sales but also by operating expenses (administration and sales).

In reference to the above, it is important to know that financial expenses are not

considered as operating expenses, since without them the company can operate without

difficulty. The calculation formula is as follows:

(2)

The net margin shows the profit per unit of sale, for this calculation not only the

on the financial results of these productive units. The information collected responds to

each item, variable and consequently to each of the study categories as established in

the operationalization matrix that summarizes the aspects that were investigated.

Consequently, each of the variables or categories responds to the specific and general

objectives set out in this research, which were:

To analyze the incidence of the pricing system in the handicraft sector producer of

furniture manufacturing companies. Therefore, an adequate methodology was

established, with the application of information gathering techniques and procedures that

provide elements of analysis; adequate for the population under study. The sample was

established with the database of the Internal Revenue Service, delimited to the artisan

taxpayers qualified by the JNDA and are producers of wooden furniture, for this task an

unstructured interview was applied to two of the oldest artisans in the sector.

Once the collection instruments were applied, the results were obtained with which the

analysis was structured by objective, category, variable and item, for a better

understanding. Consequently, it was possible to test the alternative hypothesis and

conclude that the pricing of wood furniture is done based on the current situation

flow is constant, product of the permanent sale of furniture, and they measure their

profits based not on a technical study but on the increase of their production inputs.

The analysis of all the results obtained in the research is presented below.

The calculation of the profitability index shows a positive effect of leverage, as ROE

(29.83%) is higher than ROA (22.19%), which indicates that the financing of assets with

debt has made it possible to increase financial profitability.

As shown in Table 3, the gross margin on furniture sales represents 13.54% and indicates

Table 3. Gross margin calculation