Pricing strategy for case Company x

The purpose of this thesis is to create more profitable pricing strategy for the commission company. The pricing of health and social care market are based on commute´s decision and decisions are made on organizational level. The aim of this thesis is to first review current pricing strategy, cost factors and how unit managers control expenses to be more cost efficient. As the information in the study, is sensitive, the commissioner has requested secrecy, and for that reason any specific information of the commission company will not be revealed. The theoretical framework of this thesis includes areas such as, price, different pricing strategy and social and health care market in Finland. The empirical part of this thesis was carried out as qualitative research. A digital questionnaire was sent to limited group of people and five interviews were executed via Teams and the sixth one was done the typical way face to face. The intention of the structed interviews was to get deep understanding of the recent pricing method, cost factors and how they are managed. Both the survey and interviews provided valuable information regarding the research topic and results of both the interviews and survey were pretty much the same. Company X is part of big corporation and that is why the pricing policy comes straight from the higher managing position. Nevertheless, the unit prices depend on the size of the unit, number of inhabitants, employees, and the other overhead expenses. The result of this study shows that unit managers cannot affect the pricing policy in any way, but however they have the responsibilities of managing the units’ finances based on the given budgets. The biggest cost drivers in all nursing home care are the employee expenses which they tend to control by keeping the right number of staff in relation to the residents