How Small And Middle Industries of Yogyakarta Determine The Selling Price?

‘Factors to consider the selling price of goods for businessmen of small and middle industries (UKM) in Yogyakarta.’

It is the topic written by Nugaheni Rintaari, S.E., M.Sc. official lecturer at Accountancy Department University of Ahmad Dahlan (UAD) in her research.

According to her, to determine the selling price of goods the main factor is the production cost, which includes raw material cost, man power cost, overhead cost, and marketing cost. But practically there are some other factors determining the selling price. Those factors become the focus of the research.

The research employed a survey method toward 356 respondents. The preliminary data were obtained from www.umkm.jogjakota.go.id. According to the information in the site the number of businessmen of small and middle industries in Yogyakarta in 2010 is 4.596 consisting of 2.740 micro industries, 1.481 small industries, and 372 middle industries.

‘The survey was addressed to 356 respondents, which could represent the whole population. They were given questionnaires to fill in,’ said Ngraheni. Some data in the site were not valid. There were some UKM practitioners mentioned in site were not found so that the researcher had to visit the respondents in the 14 districts of Yogyakarta. The biggest number of respondents came from Gedongtengen district, which reached 12.07%. The whole respondents consisted of five sectors namely handicraft and general industry, chemical and construction industry, metal and electronic industry, food industry, and clothing and leather industries. The biggest number of respondents came from food industry.

‘The result of the research showed that UKM practitioners in Yogyakarta considered factors of cost, purchasing time, consumers’ need, product risk, and business mood to determine the selling price of goods,’ Nugraheni added.

She emphasized that more than 50% respondents understood the production cost, raw material cost, overhead cost, and the profit. Moreover, 71% respondents had carried out book keeping.

The research revealed that 16% respondents lowered the price for their first buyers and only 10% of them lowered it when the stock was limited. 30% respondents lowered the price for their relatives, 20% for their neighbours, and raised the price for strangers.

The research also showed that 36% of business practitioners lowered the price in case the product would soon expire, make difference of old and new price, and raised the price for guaranteed product. Furthermore, 34% of the business UKM practitioners employed sense of business i.e. serving customers with the consideration the their good attitude (Dok)