Final Sale Price Research Articles

MANAGING THE ASSORTMENT OF THE MANUFACTURER`S CONSUMER GOODS

The article is devoted to certain aspects of the activities of product manufacturers in modern conditions - the development of recommendations for improving the management of the assortment of consumer goods. The stages of formation of a model for managing the assortment of a consumer goods manufacturer are defined, starting with the formation of an information base for management of the distribution policy, until the selection of the final strategy for managing the assortment of the enterprise. A study of the distribution channels of Kharkiv Meat Factory LLC and Kharkiv Dairy Factory PJSC shows that the main volume of products is sold through several intermediaries. At the same time, the increase in the final sale price is the result of the promotion of consumer goods through several intermediaries. It is proposed to reduce the chain of goods movement due to the creation of a joint distribution center by the manufacturer and the trade network. The process of modeling the company's assortment is very complex, which requires the use of a comprehensive approach. A comprehensive approach to the development of an assortment model consists in taking into account the elements of the company's assortment policy based on the application of heuristic methods of forecasting the sales volume of consumer goods, which predict the influence of external factors. Therefore, the article developed methodological recommendations for the construction of a management model for the process of forming the assortment of a consumer goods manufacturer as a system of theoretical and methodological views on understanding and defining the essence, content, goals, tasks, principles of forecasting sales volumes and distribution management methods, as well as organizational practical approaches to the formation of the mechanism of their implementation in the specific conditions of the operation of the enterprise. The proposed approach based on a flexible, competitive assortment model will allow to increase the competitiveness of domestic manufacturing enterprises and retail enterprises, which is absolutely necessary in the conditions of Ukraine's accession to the WTO.

148 Economic Assessment of Beef Cattle Backgrounding in Brazil at Pre and During the Covid-19 Pandemic

Abstract The production costs of beef cattle grazing backgrounding systems between 2018/2019 (pre) and 2020/2021 (during) pandemic were evaluated. A comprehensive mathematical model for the cost of production was used according to the Economic Theory. Costs were collected and allocated into Fixed Cost (FC), Variable Cost (VC), and Total Cost (TC). In addition, analyses were performed concerning total income and profitability. A survey was carried out in 2018 with a rancher in the state of Minas Gerais (Brazil) to define major technical indicators of production. The spot prices used in our analysis were collected in 2018/19 and 2020/21. The base-animal used for such growing phase assessment represented the Nelore breed (Bos indicus), intact males and females, weaned at approximately 7-10 mo, and averaging 195 ± 15 kg of live shrunk BW (body weight), which remained in a grazing system for 12 mo. The average selling weight was 360 ± 15 kg shrunk BW. Animals (n = 34) were separated into three lots according to the ranch of origin and sex. Mineral supplementation was provided for 150 d during the greatest forage supply, while protein supplementation was offered for 210 d during the least forage supply for all animals. After comprehensively accounting for inputs, the cost index was compared between the two periods. The total cost for the 2018/19 production-period was US$ 1.13kg of BW, while an increase of approximately 53% (US$ 1.70kg of BW) was observed for 2020/21. The FC represented in the year 20/21 was 2.66 % less than 2018/19, which represented 22.9% of all costs combined. The VC represented 66.3% of the total cost in 2018/19, in which cattle purchase cost and feed cost represented 58.8% and 7.1%, respectively. For 2020/21, the VC increased to 70.7% of the total cost, in which cattle purchase cost and feed cost represented 62% and 8.5%, respectively. Regardless of the period, the most representative items analyzed were the cattle purchase price and feed costs. There was a 68.9% increase in gross income, followed by a raise in profit from US$ 0.26/kg BW in 2018/19 to US$ 2.9/kg of BW in 2020/21. The factors that influenced profitability the most were the purchase and sale price of animals. The shorter feeder cattle supply during the pandemic induced greater overall costs, although also positively affecting the final sale price of long-yearlings, which generated widened margins. The current cost calculation model showed to be helpful while allowing testing scenarios, possibilities, and helping producers to manage risk in such cattle enterprises.

Just‐below pricing in real estate: Impact by price segment and market conditions

AbstractMost prior studies of just‐below pricing have primarily focused on low‐stakes inconsequential consumer purchases, such as everyday household items. Using data from the Multiple Listing Service for the city of Savannah, Georgia, from 2006 through 2021, this study extends the more limited research on just‐below pricing for more consequential purchases, specifically housing. Beyond an examination into the general effectiveness of just‐below pricing in real estate, this study also explores the heterogeneous effects of its usage on sale price during different market conditions and in different market segments. The study shows that just‐below pricing is common in the real estate market, and it does have an impact on final sale price, working most effectively within cold real estate markets. Furthermore, it is found that just‐below pricing works best (though it is utilized least often) within low‐end price segments, while just‐below pricing can work against the seller in high‐end home price segments (though it is used most often in these segments).

Technical-economic viability of white snook Centropomus viridis culture in floating cages in a coastal lagoon in northwestern Mexico

Snooks from the genus (Centropomus spp.) are an important fishery resource in the Americas and are a new species for marine aquaculture. Nevertheless, their production potential remains unknown. This study assessed the viability to grow-out Centropomus viridis juveniles raised in marine floating cages. At the nursery stage, 15,000 juveniles (0.8 ± 0.2 g) were stocked in one 235 m3 cage at a mean water temperature of 21 ± 3.4 °C. After 120 days, the juveniles reached an average weight of 43.6 ± 20.6 g. Subsequently, the juveniles were harvested and graded by weight to continue the grow-out process. Three groups were formed for the initial grow-out period: 30 g (G30); 40 g (G40); 60 g (G60). After a period of 270 days, the mean weights of G30, G40, and G60 were 522 ± 84, 565 ± 72, 600 ± 85 g, respectively. The average grow from the three groups showed 0.77 ± 0.18 g day−1 when they were cultured at temperatures < 24 °C, while at temperatures > 26 °C the mean growth rate was 3.07 ± 0.76 g day−1. Economic simulations, using sensitivity analyses showed that 10 USD/kg is the only final sale price that generates profitability with a production of 20 tons and survival of 60%. Our work suggests that the grow-out site should be located in an area with a tropical-subtropical latitude, in which water temperatures oscillate between 26 and 32 °C, and that 30 g juveniles should be used in order to improve survival during the rearing conditions in the initial grow-out stage. The results showed that C. viridis culture could be both technically and economically viable.

The Spatial and Temporal Decomposition of the Effect of Floods on Single-Family House Prices: A Laval, Canada Case Study

This paper aims to estimate and decompose the spatial and temporal effect of a flood event occurring in the city of Laval in 1998 using a hedonic pricing model (HPM) based on a difference-in-differences (DID) estimator. The empirical investigation of the impact of flood as a natural disaster must take into account the fact that the negotiation process between buyers and sellers may well occur before the event. It is argued that the evaluation procedure needs to be adjusted to account for this reality because the estimation of the effects may otherwise be biased and isolate other effects. To test this hypothesis, the study focuses on transactions occurring between (1995 and 2001) and within designated floodplains to adequately isolate and decompose the impact of flood. The original database contains information on 252 single-family houses transactions. The results suggest that the estimation of the impact is time dependent, with a measured negative effect appearing several months after the flood, suggesting that the impact is hard to establish right after the event since transactions, and the final sale price, could have been fixed by negotiations well before the event. The statistical methodological framework of flood research should be adapted to account for the negotiation process occurring prior to the flood event to be able to correctly isolate the impact for the after event. The flooded area also needs to be precisely identified to be able to correctly estimate the flood impact on houses that have faced flood.

119 Physical, discipline, and breed factors influence sale price between stock-type and sport-type horses sold in online auctions

Online auctions are becoming a common place to sell horses and other equids due to increased marketability and focused sales for different discipline areas. Within the United States, online auctions and sale parameters for stock horses have been well established, but a similar online auction format for sport horses has recently become available. We hypothesized that horses marketed in stock or sport auctions would differ in bid price relative to physical characteristics, cross-discipline training, and breed registration status. Data from 51 stock and 75 sport online auctions across an 8 year period (Professional Horse Auctions, LLC) were assessed to determine market specific variations in sale price, along with desired traits including type and number of disciplines for which the horse was trained, breed, and registration status. Height (cm) was recorded and classified as a pony (less than 142.24 cm), small horse (142.24 to under 162.56 cm) and large horse (162.57 cm and above). Data were assessed using ANOVA and mean comparisons (a = 0.05), with Tukey's pairwise post hoc analysis where appropriate (STATA 16). Online auction format proved to be more effective for stock horses with 59.2% (n = 1,374) sold, compared with only 41.5% (n = 1,012) of sport horses. Across all horses (n = 4,744), sport horses (n = 2,425) sold at a higher mean price (5,164 ± 5,345 USD) than stock horses (n = 2,319, 3,303 ± 3,332 USD). The size of the horse impacted final sale bid across stock and sport listings, with large sport horses having a higher final sale price (7,471 ± 237 USD, P = 0.00001). The number of disciplines listed per horse was not a contributing factor to sale price; however, if listed, specific disciplines such as dressage (5,729 ± 5,590 USD) and jumping (5,516 ± 5,3 USD) resulted in a higher sale price ( P = 0.0001). Registry within a breed or riding association tended to be a driving factor in a successful sale ( P = 0.08); however, horses listed as registered did not differ in their price when evaluated by sale type. Understanding driving factors, including height, breed registry, and discipline training, that affect online auction bid differences across stock and sport horses may help inform sale decisions for both buyer and seller.

Examining omitted variable bias in anchoring premium estimates: Evidence based on assessed value

AbstractA new assessed value approach is proposed to control for the amount of persistent unobserved quality. The approach to a well‐established two‐stage framework developed by Genesove and Mayer (GM, 2001) is applied, who test the effect of an expected loss on final transaction prices in the housing market. It is shown that the assessed value model effectively mitigates the omitted variable bias and produces similar results as GM when the first‐stage residual is included. Importantly, the model does not rely on repeat sales and therefore provides a powerful new tool for estimating market value. Results are robust to alternative specifications, to controlling for loan‐to‐value ratios, to replacing final sale price with listing price, to alternative fixed effects, to subperiods, to different holding periods, to simulated quality, to excluding flippers, and to controlling improvements between sales.

Price Determinants of Stock-Type Horses Sold at Public Online Auctions

AbstractThere is a shift in livestock auction sales in consolidation of live markets and movement toward virtual marketplaces. We examine buyer preferences for nonracing stock-type horses sold through virtual auctions to better understand how animals are sold and their valuation. A shift towards online sales of equine has impacted the number of potential buyers through increased exposure to sale horses. Using data collected from online auctions, we estimate factors influencing propensity to sell as well as price determinants in this market platform. We find many factors contribute to the likelihood of a horse selling and to the final sale price.

Big data analytics predicting real estate prices

The enormous data generated on daily basis amounts to big data technologies. This large amounts of data have knowledge and hidden patterns. Real estate turning out to be another biggest application in big data. The emphasis of this paper is to map the process involved in taking large amounts of data to predict the price of a house in real estate. The real estate sounds to be a long-term investment. In this paper, the housing Sale Data from Ames, Iowa is considered for the timeframe 2006–2010 with a view to construct relevant models to estimate the final sale price of a house. Due to high number of explanatory variables several models such as linear regression, random forest and gradient boosting models have been used as tools for feature selection to determine the statistically significant characteristics that influence the final sale price of a house. It has been observed that out of all the models, the gradient boosting model returned the efficient results.

Do Sellers with Expected Losses Obtain a Premium Price? Really?

We propose a new assessed value approach to control for the amount of persistent unobserved quality. We apply our approach to a well-established two-stage framework developed by Genesove and Mayer (GM, 2001), who test the effect of an expected loss on final transaction prices in the housing market. We show that our assessed value model effectively mitigates the omitted variable bias and produces similar results as GM when the first-stage residual is included. Importantly, our model does not rely on repeat sales and therefore provides a powerful new tool for estimating market value. Results are robust to alternative specifications, to controlling for loan-to-value ratios, to replacing final sale price with listing price, to alternative fixed effects, to subperiods, to different holding periods, to simulated quality, to excluding flippers, and to controlling improvements between sales.

Limited Attention in the Housing Market: Threshold Effects of Energy-Performance Certificates on Property Prices and Energy-Efficiency Investments

We study the effects of limited attention on property prices and energy efficiency (EE) investments in the housing market. Using a novel dataset, we analyse over 5 million residential property sale transactions in England and Wales, each containing information about sale price, property and location characteristics, and a mandatory energy performance certificate (EPC). The EPC includes a continuous energy cost rating (SAP rating) which is mapped into seven colour-coded rating bands (ranging from green A to red G). Applying a Regression Discontinuity Design (RDD), we document significant price discontinuities at the rating band thresholds. We estimate that - holding the underlying SAP score equal - being in a higher rating band increases the final sale price of a property between 0.8% and 2.5% ($2,000 and $6,625 based on average sale prices) depending on the threshold crossed. The presence of price discontinuities suggests that individuals are attentive to the simpler colour-coded rating band and partially inattentive to the more precise SAP rating. We present a simple model for estimating the degree of inattention and show that, for a given level of attention, rating bands reduce attention to the SAP rating by 25% on average. Importantly, the detected price discontinuities appear to influence market behaviour: Sellers whose property receives an EPC rating just below a threshold to the next-higher rating band are between 0.4% and 11% more likely to make last-minute EE investments before placing their property on the market. We discuss a number of recommendations of how to best leverage these threshold effects to improve policy design, which can be extended to other settings where the provision of simplified information creates reference thresholds.

An evaluation model for an effective risk assessment in the rent to buy property market

PurposeIn this research a model for the rationalization of the assessment in a rent to buy contract has been proposed, in order to contextualize the economic amounts involved in the negotiation according to the specific market risk of the area where the property is located. The paper aims to discuss this issue.Design/methodology/approachThe model borrows the logical principles of operational research, in order to take into account the convenience constraints of the parties involved (seller and buyer) and to determine the minimum amount of the additional annual rent to be charged as down payment on the final sale price, compensating the investment risk. The procedure proposed for the risk assessment combines the discrete modeling of real option analysis and the exponentially weighted moving average method, in order to weigh appropriately the data available for the specific area in the analysis.FindingsConsidering the limit conditions of variability of the property market value at the time provided for the notarial deed, the proposed model returns two values (minimum and maximum) for a fixed contract duration and for a specific market area for the annual additional rent, which define the reference range to ensure the compliance with the convenience constraints of the parties involved.Practical implicationsIn order to test the reliability of the developed methodology, the model has been implemented to the 24 “microzones” defined by the Italian Revenue Agency for the city of Bari (Southern Italy). The results obtained were then georeferenced, in order to create thematic maps of convenience for the subjects interested in the rent to buy formula. The developed maps define a useful support to be consulted in the negotiation phase between the seller and the buyer, allowing both to verify the investment conveniences within the limits of their disposable incomes and their needs.Originality/valueThe tabulated values of the down-payment amounts and the related thematic maps constitute a valid support for both the parties in the initial negotiation phase of the contractual conditions: in fact, if comparable data for the assessment of the market value and the market rent at the time of the stipulation of the contract are ordinarily available, the increase in the rent, to be charged as the annual down payment on the final purchase price, is generally entrusted to the contractual capabilities of the subjects involved, since there is no market reference that can direct an appropriate assessment.

Pemanfaatan KUR, Pembentukan Koplay, Penggunaan saluran distribusi daring (online): Solusi Peningkatan Usaha Kampung KB Layang Layang Kota Palembang

The business of the KB Village community has enormous potential to continue to grow. Support from the government, good family relations in the community, enthusiasm to learn and improve themselves, and the unique name of the village as a brand contribute to the advancement of SMEs in the KB Village community. This research is expected to be able to provide solutions on how to increase the business and income of Layang Layang KB Village UPPKS. This research method is a Census (survey), where all KB Village Cadres who have businesses both micro and small scale are used as research samples (saturated samples). and by using qualitative descriptive analysis, this research shows that: 1). Utilization of KUR bank products can be a solution to the problem of limited business capital faced by the Layang-Layang village community. Our visit also educated the public on how to manage good finances, from separating personal / household needs from business needs, to setting aside operating profits to be used as business capital. 2). The kite production process is divided up to sales that depend on collectors, making the formation of community associations as a solution to better manage the production process, more efficient sales process, to the flexibility of determining the final sale price of the kite product. Sales that do not depend on collectors will be able to maximize profit potential for the community, not shrinking by a long business process. 3). The introduction of online sales channels is the right solution so that people's products are more quickly recognized, expand target markets without having to incur expensive costs, and increase sales. Enthusiastic and understanding of the community from the training in the use of online shops: The Bukapalak that we held, convinced our group that the businesses of the KB village community have the potential to advance. 4). The problem of kite seasonal products faced by the community can be dealt with by developing products, creating differentiation of kite products from the KB village with other kite products, and starting to think creatively.

Análisis de las modificaciones que incorpora la reforma tributaria ley n°20.899 al área de la construcción

Las modificaciones introducidas por la Reforma Tributaria Ley N° 20.780 del 29 de Septiembre 2014, modificada por la Ley N° 20.899 del 08 de Febrero 2016, tienen como efecto o consecuencia directa el encarecimiento en las ventas de bienes inmuebles realizadas por una empresa inmobiliaria, otras empresas o personas naturales, debido al recargo del impuesto al valor agregado en el precio final de venta de los inmuebles.La metodología empleada fue bajo un enfoque cualitativo con alcance de comprehensión, el cual se desarrolló en seis etapas. Entre ellas se contempló la revisión de textos, artículos, elaboración de un cuadro comparativo, simulación de casos prácticos y entrevistas a profesionales del área.De esta investigación, se concluye que las diferencias entre las propuestas de las reformas radica en las ventas realizadas tanto por una empresa constructora como inmobiliaria, ya que ahora están afectas a IVA, con la finalidad de recaudar mayores impuestos.

Phenotypic and genotypic characteristics on calves’ sale price on the western border of the state of Rio Grande do Sul, Brazil

ABSTRACT: The demand for beef cattle with specific traits is evident from sales in auctions. While purchasing, buyers consider individual traits (e.g., muscularity, frame, racial composition, and weight) as predictors of quality, and adjust their bids according to their preferences. The present study aimed to evaluate the effect of phenotypic and racial characteristics in determining the final sale price of calves of beef cattle in official auctions at the western border of the state of Rio Grande do Sul, Brazil. Five-hundred and seven lots of calves sold in calf auctions from five cities on the western border of Rio Grande do Sul were evaluated. The assignment of visual scores was based on their genetic group, frame, muscularity, and coat. Analysis of variance and the Tukey test at 5% significance level were performed for comparing the final average prices. Variables with the greatest impact on price were the genetic group and the size of the animals. Animals of synthetic breeds obtained higher value in the three years studied and animals without racial definition showed considerable devaluation and a decrease in supply. Larger animals had less value.

OPTIMAL LIST PRICE AND DURATION OF VACANCY IN THE HOUSING MARKET IN TOKYO

In the housing market, the advertised list price significantly influences the final sale price and the duration a property spends on the market. With the uncertainties and complexities of the housing market, the list price can be a difficult and critical decision for home sellers. This paper develops a theoretical model for an optimal list price strategy with an information learning process to ensure a maximum expected return and a discussion of the ideal vacancy rate. The optimal list price strategy is composed of factors such as the frequency of list price revisions, the best timing to revise the price, and the value of a sequence of list prices and varies according to the market situation, and patience and prior knowledge of the seller. The results of the application in Tokyo 23 wards imply that there is an excess of houses in the sale market and potential for home sellers to improve their list price strategy and the learning process in order to shorten the time a property spends on the market without losing any return.

Impact of Reputation and Promotion on Internet Auction Outcomes: Finnish Evidence

ABSTRACTThe purpose of this article is to explore the impact of seller’s reputation and promotional methods on auction outcomes in the Finnish online auction website, Huuto.net. Multiple linear and logistic regression analyses are used to test a set of hypotheses. The dataset consists of 227 auctions of iPhone 4S 16 GB mobile phones posted for auction by 138 individual sellers. The main finding is that sellers who have acquired a free identification from Huuto.net achieve a hefty increase in the final sales price. Sellers who have not established an online reputation achieve considerably lower closing prices at auction. An increase in negative feedback points reduces the final sales price. Purchasing display-enhancing promotional options does not increase the price but may improve probability of sale. Establishing reputation, avoiding negative feedback, and acquiring identification pay off. The promotional options associated with fonts and colors are not worth the cost.

Putting time into space: the temporal coherence of spatial applications in the housing market

Relationships between past events, future expectations and present decisions, typically examined through a temporal prism within applied economics, have been lately moving to the spatial dimension through spatial econometrics. However, violations of the “arrow of time”, and thus causality, have been identified in spatial econometric techniques applied to spatio-temporal data consisting of observations each at a specific location and distinct moment in time. A comprehensive review classifies for the first time several redresses to this issue in a currently fragmented literature. This paper puts back the temporal dimension into spatial Hedonic Pricing models through a unique specification of a spatio-temporal model that successfully isolates three distinct effects. First, past sale prices affecting current prices, which exemplifies the “sales comparison” approach. Second, a contemporaneous peer effect that is occurring within the narrow time frame of interaction between market participants prior to a sale. Third, the signals of sellers' expectations are captured in the asking prices of other houses not yet sold, while the buyer is active in the market. This affects the final sale price, due to strategic behavior and anchoring. This is the first instance that effects other than the own asking price can be handled in such models. In “boom” market conditions, this mechanism introduces the expectation of increasing prices to the hedonic price function, potentially contributing to housing market “bubble” propagation.

The effect of listing price strategy on real estate negotiations: An experimental study

When selling a home, an important decision facing the homeowner is choosing an optimal listing price. This decision will depend in large part on how the chosen list price impacts the post negotiation final sale price of the home. In this study, we design an experiment that enables us to identify how different types of common list price strategies affect housing negotiations. Specifically, we examine how rounded, just below, and precise list prices impact the negotiation behavior of the buyer and seller and, ultimately, the final sale price of the home. Our results indicate that the initial list price strategy does play an important role in the negotiation process. Most notably, a high precise price generates the highest final sale price, smallest percentage discount off the list price, and the largest fraction of the surplus to the seller, while just below pricing leads to the lowest final price, largest percentage discount, and smallest fraction of the surplus to the seller. This pattern seems to be largely driven by sellers making persistently higher and more precise counter-offers throughout the negotiation process when the initial list price is high precise. Interestingly, these effects generally attenuate with negotiating experience. Importantly, our experimental results are generally consistent, both in direction and magnitude, with the limited transactions-based empirical studies relating to real estate listing prices.

A Spatiotemporal Solution for the Simultaneous Sale Price and Time‐on‐the‐Market Problem

There exists an important methodological challenge when dealing with sale price and time‐on‐the‐market variables because both variables are simultaneously determined and related to the motivation of the sellers and buyers. Exploiting the fact that transactions occur over space and time, we propose a two‐stage approach based on instrumental variables (IV) built from information collected from previous transactions. The unidirectional temporal property and the fact that other transactions are exogenous from the perspective of a single buyer or seller are exploited to evaluate the effect of the sale price on time‐on‐the‐market, and the effect of time‐on‐the‐market on the sale price. Based on 29,471 transactions occurring in the suburban neighborhood of Montréal (1992‐2000), the results suggest that, everything else being equal, houses staying longer on the market provide negative information to the market, which results in a lower final sale price, while the final sale price is negatively related to time‐on‐the‐market, indicating that houses of better quality (better amenities) stay less time on the market.