ADJUSTMENT OF MARKET STALL AND KIOSK RENTAL RATES FOR PT. TANJUNGPINANG MAKMUR

Policies of decentralization and regional autonomy have provided opportunities for regional governments to increase regional revenue sources through local ownership revenue (PAD). One source of PAD is the distribution of profits (dividends) obtained through regionally owned enterprises (BUMD). This study simulates the calculation of rental rates for kiosks, tables, booths, and buildings managed by PT. Tanjungpinang Makmur Bersama (TMB) which is a BUMD owned by the Government of Tanjungpinang City. With this rental rate adjustment, it is expected to increase TMB’s revenue,which in turn, will increase Tanjungpinang City’s PAD and encourage PT. TMB to become an independent BUMD. This study was conducted in a quantitative descriptive manner using a case study research strategy (CSR). Based on this study, four simulations were performed to calculate the rental rate adjustments. In the first simulation, increasing the price of kiosks/ tables/shops by 146.90% will provide dividends to the Tanjungpinang City Government of IDR 500 million a year, excluding other businesses. The second simulation, by increasing the price of the kiosk/table/shop by 99.14%, will provide a dividend of IDR 100 million per year. In the third simulation, if the price of the kiosk/table/shop increases by 93.17%, it will provide a dividend of IDR 50 million a year, excluding other businesses. In the fourth simulation, if the price rate for the kiosk/table/booth is increased by 87.20%, it will provide a dividend of IDR 0 a year, excluding other businesses.


A. Introduction
In the current era of regional autonomy, the emphasis on granting regional autonomy is given to provincial, regional, and city governments by the central government.The authority given is to regulate and manage government affairs based on the interests of the community and according to their own initiative, by absorbing the aspirations of the people who are still included in the territory of the Unitary State of the Republic of Indonesia (NKRI) 1 .To carry out development, local governments must be able to explore financial resources effectively and efficiently to meet development needs.Local government funding sources depend on the role of Regional Original Revenue (PAD). 2 Activities that occur in a trading center in general 1 Yuni Wulandari dan Muhammad Arif, "Pembangunan Ekonomi Provinsi Bali Periode 2014-2020 Berdasarkan Peran Perempuan Terhadap PDRB," Reviu Akuntansi, Manajemen dan Bisnis 2, no. 2 (2022) 2 Hafizh Billy Anisman, "Analisis Faktor - Faktor yang Memengaruhi Kinerja Keuangan pada Pusat and traditional markets as one of the sub-systems of a trading center in a city are parameters that can be used to measure the economic growth and dynamics of a city. 3The intensity and variety of activities that occur in a market characterize the economic activity in a city.The higher activity in the market is an indicator of the increasingly dynamic rotation of the economy.
Amid the rapid development of modern markets, malls, supermarkets, and traditional markets seem to have a strategic position.Despite the fact that in various areas, traditional markets tend to be unable to compete with modern markets. 4In various regions, the impact has been felt by many parties, especially traders in traditional markets.As a result of the rapid development of modern markets, traditional markets have been relatively quiet. 5Almost all traditional markets in Indonesia still struggle with internal problems such as poor management, inadeguate facilities, and infrastructure, the proliferation of street vendors (PKL), which reduces market vendor customers, and the lack of capital assistance available to traditional traders. 6To deal with the problems experienced by traditional markets, the central government and regional governments, both individually and jointly in accordance with their respective fields of duty, carry out the guidance and supervision of traditional markets by empowering traditional markets by (1) seeking resources-alternative sources of funding for empowerment, (2) increasing the competence of traders and managers, (3) prioritizing opportunities to obtain business premises for existing traditional market traders prior to renovation or relocation, and (4) evaluating management 7 .
Tanjungpinang City is the capital of Riau Archipelago Province.
The Tanjungpinang City Traditional Market involves several parties in its implementation, namely the local government, represented by PT.TMB as a BUMD that manages traditional markets as service providers, traders, and visitors to traditional markets as consumers of traditional markets, as well as traditional markets, in this case, holding the function of a place managed by PT.TMB Tanjungpinang City.
In traditional markets, the main problems highlighted are inconvenience, weak and unprofessional market management, and inadequate facilities and infrastructure, thus impacting market performance in it's operations.With the implementation of a good market governance system, it is hoped that it will provide benefits for PT.TMB as the market manager, and in the end, more profits are handed over to the Municipal Government of Tanjungpinang, which is the shareholder of PT.TMB through dividends and will be recorded as Regional Original Income (PAD).In recent years PT.TMB experienced difficulties in its operations due to a decrease in income from its main business, which are kiosks, tables, stalls, and buildings rental.This is why it is necessary to re-adjust the rental rates that have been enforced so far so that the company does not suffer losses.The purpose of this study is to recalculate the rental rates for kiosks, tables, stalls, and buildings managed by PT.TMB; therefore, the company does not suffer losses.With this rental-rate adjustment, the PT is expected to increase.TMB's revenue, in turn, can increase Tanjungpinang City's PAD and encourage PT.TMB is a regionally owned enterprise that is an independent BUMD.

B. Traditional Market
The sale and purchase agreement comes from the translation of the contract of sale.The sale and purchase agreement is regulated in Articles 1457 to 1540 of the Civil Code.What is meant by sale and purchase is an agreement is where one party binds himself to hand over an object. 10Traditional markets are places where sellers and buyers meet and are marked by direct transactions; there is usually a bargaining process.Market buildings typically consist of stalls or outlets, wider access to producers, and open platforms utilized by sellers or market managers.In mainstream economics, the concept of a market is defined as any structure that allows buyers and sellers to exchange goods, services, and informations.The market is divided into two types: traditional and modern.
The concepts of these two markets are similar; the only differences are the advantages and benefits of these two types of markets, namely: 1. Price of goods.There are significant price differences between goods sold in traditional and modern markets.The price of an item in traditional markets can be up to three times cheaper than the price of the same item sold in supermarkets, especially for fresh produces, such as vegetables and herbs such as shallots, garlic, ginger, galangal, pepper, red chilies, and pepper; 2. Bargaining.Shopping in traditional markets allows buyers to bid on the price of goods until they reach an agreement with the seller.
However, in the modern market, usually buyers can't haggle, because the goods are set at fixed prices; 3. Discount.A number of supermarkets often make tempting offers.
However, it should be noted whether this is a disguised promotion that could make buyers more consumptive; 4. Shopping convenience.Shopping in modern markets is far more comfortable than shopping in traditional ones.Supermarkets have larger areas, clean and neat, and are equipped with air conditioning.
Traditional markets occupy narrower areas, are crowded, and often emit unpleasant odors; and 5. Product freshness.For fresh products such as meat, fish, vegetables, eggs, and so on, traditional markets usually offer fresher products than supermarkets because preservatives have not been added.
Traditional markets are important sectors that support the economy.In it, the interests of common people in the upper middle class are accommodated.
Generally, traditional markets sell staple goods (groceries).Traditional markets, such as the morning, afternoon, and weekend markets, usually operate within certain time limits.Traditional markets are usually managed by the government or private sector, and the available facilities include wards, loads, warehouses, shops, stands/kiosks, and public toilets around traditional markets.

C. Regulations Concerning the Legal Position of Traditional Market Traders
The trade sector is very open, in the sense that there are no obstacles to entering and exiting this sector.The development of trading activities involves the participation of the public as consumers, business entities as producers of goods and services, and traders who function as sellers of consumers.This sector extends from traditional commodity transactions to modern commodity trade transactions, especially for SMEs.To expedite the transactions of the two actors involved, it is necessary to have a place to sell goods that reflects the desires and aspirations of the parties involved.
This traditional market, which accommodates a large number of sellers of goods for daily needs, is characterized by a relatively monotonous atmosphere and pattern of activities.Furthermore, it shows that traditional markets still seem to have a fairly large market share, meaning that there are still many members of the public who seek maximum economic advantage, to obtain goods at low prices and obtain maximum satisfaction. 12In determining the empowerment of traditional markets, market segmentation is really important.
Several criteria must be met, one of it is, measurability. 13It should be able to measure to make it easier to determine the target market.The measures are as follows: 1.A potential market is a set of consumers who express sufficient interest in a market offer; 2. The available market is the set of consumers with interest, income, access, and qualifications for a particular market offering; and 3.The target market is part of the available market that the company will enter, based on the company's readiness and policies.
Governments and local governments, both individually and jointly in accordance with their respective fields of duties, carry out the guidance and supervision of traditional markets, shopping centers, and modern shops.Local governments foster traditional markets by doing steps as follows: 1. Strive for alternative sources of funding to empower traditional markets in accordance with the provisions of applicable laws and regulations; 2. Improve trade competence and traditional market management;

Definition of Price
Price is one of the elements of the marketing mix or marketing mix that can generate income, whereas the other elements require costs.As stated by Kotler, price is part of the mix marketing elements, namely what is known as the four P's (price, product, place, and promotion). 15The price for a business/ business entity generates income (income), and the other elements of the marketing mix, namely product, place, and promotion, cause costs or burdens to be borne by a business/business entity.For entrepreneurs/traders, prices are the easiest to adjust to market conditions while other elements such as product, place, and promotion require a longer and longer time to be adjusted to market conditions, because prices can provide an explanation to consumers regarding product quality and the brand of the product. 16 economic theory, the notions of price, value, and utility are the most Price is the only element of the marketing mix that provides income or revenue for the company, whereas the other three elements (product, distribution, and promotion) cause costs (expenses).In addition, price is an element of the marketing mix that is flexible, meaning that it can be changed quickly.The set price level affects the circulation of the goods sold.The quantity of goods sold affects the costs incurred in relation to the procurement of goods for trading companies and the production efficiency for manufacturing companies.Thus, prices affect revenue; thus, prices affect operating profits and the company's financial position.Price is an indicator of the benefits that consumers receive for the goods and services received, which is closely related to the value that consumers receive for prices.Value can be defined as the ratio between perceived benefits and price, or can be formulated as follows: Value = Perceived Benefits : Price From the equation above, the value of goods or services perceived by consumers is influenced by the benefits received, which increase at a certain price and vice versa.Price communicates the intended value positioning of a company's products to the market because a high-quality product will sell at a higher price and generate larger profits.Prices have forms and functions such as rent, fees, and wages.Price has two main roles in the buyer's decision-making process: allocative and information. 18 1.The allocative role of price, namely, the price function, helps buyers decide how to obtain the highest expected benefit or utility based on their purchasing power.Buyers compare the prices of various available alternatives and then decide on the desired allocation of funds; and 2. The informational role of price-that is, the function of price in educating consumers about product factors such as quality.This is especially useful in situations where the buyer has difficulty objectively assessing product features or benefits.The prevailing perception is that high prices reflect high quality.
Many economists assume that consumers are price takers and accept prices the first time they receive them, and then they decide whether it is acceptable.The purchase decision is based on how consumers perceive the price and current actual prices of other items that are taken into consideration.
Consumers certainly have a lower price limit, where a lower price indicates a product with poor quality, and an upper price limit, where a price higher than that limit is considered excessive and not worth the money spent.

Pricing Stages
Pricing has always been a problem for every company because it is not the absolute power or authority of a merchant.Although pricing is important, many companies are still troubled in dealing with pricing problems.Because it generates sales revenue, price affects the level of sales, profit levels, and market share that can be achieved by the company. 19In determining a price, the factors that influence it, either directly or indirectly, must be considered, which are: 1.  i.The quantity of products sold is very sensitive to price, meaning that the product has a highly elastic demand; ii. Significant reductions in unit product and marketing costs can be realized through large-scale operations; iii.The product is expected to experience strong competition after being launched in the market; iv.The high-end market is not sufficiently large to support the price set by the filter-pricing strategy; and v. Considering the company's marketing politics, other factors to consider include the politics of marketing by looking at the goods, distribution systems, and promotional programs.Kotler and Amstrong (2002) reveal the factors that influence and must be considered when setting the price as follows. 22ery product has distinct qualities that affect markets and prices Judging from some competition, various pieces of information are needed as a basis for analyzing the characteristics of competition that are and will be faced by companies in the present and in the future, including the number of companies in the industry, the relative size of each member in the industry, product differentiation, and ease of entering the industry concerned.
Other environmental elements In addition to these two factors, companies also need to pay attention to and consider other factors, such as the economic condition of a country, because there are various phenomena that can endemically affect economic flows such as inflation, bomb attacks, reviews, and bank interest rates, government regulations, and other social policies.

Pricing Method
Pricing is adding a value or the number of production costs that are calculated against the costs incurred and the sacrifice of labor and time in processing goods or services.In setting the selling price of a product, a company must pay attention to various parties, such as end consumers, dealers, competitors, suppliers of funds, workers, and the government.The price level is inseparable from the purchasing power of consumers, the reaction of competitors, the type of product, the elasticity of demand, and the company's profit level.Kotler and Amstrong (2002) state some details of the six-step procedure for setting prices: 1. Selecting Objectives in Pricing; Initially, the company must position the offer in the market because the clearer the company's goals, the easier it is for the company to set prices.These objectives are: • Survivability: This objective is used when the company experiences pressing conditions, such as excess capacity, intense competition, and changing consumer desires.As long as prices cover variable costs and some costs are fixed, profits are not as salient as they are for survival in the face of extinction; • Maximum Current Profit: Usually, the company sets the price that maximizes current profit.They estimated the demand and costs associated with alternative prices and chose the price that resulted in the current price; • Maximum Market Share: By maximizing market share, the higher the sales volume, the lower the unit cost, and the higher the long-term profit.When setting the lowest price, the assumption is that the market is price sensitive, called the market penetration pricing practice, which can be applied under the following conditions: a.The market is very price sensitive, and low prices stimulate growth.
b. Production and distribution costs decrease as the production experience increases.
c. Low prices encourage both actual and potential competition.
• Maximum Market Milking: Initially, the price is set high and decreases slowly as time passes, or the pricing milks the market.
This will fail if a major competitor decides to lower the prices.
The market can be milked under the following conditions: i.At this time, many buyers have a fairly high demand.
ii.The unit cost of producing a small volume is not high enough to negate the advantage of introducing the maximum price that the market can absorb.
iii.A high initial price does not attract more competitors.
iv.A high price communicates superior product image.
• Product Quality Leadership: The company strives to be the product quality leader in the market by promoting the "affordable luxury" brand of products and services defined by high levels of perceived quality, taste, and status at the prices consumers can afford; and • Other Goals: Regardless of the specific objective, businesses that use price as a strategic tool will generate more profits than businesses in which only the price or market determines their pricing.
2. Define Request; Each price leads to a different level of demand, and will therefore have various impacts on a company's marketing objectives.In general, demand is inversely related; the higher the price, the lower the demand.Sometimes, consumers accept a high price to indicate a better product; however, if the price is too high, the level of demand is likely to fall.These are the steps: • Price sensitivity: Estimating demand to understand what affects price sensitivity.Typically, customers are not very sensitive to the price of cheap goods or the price they buy.
• Estimating the demand curve: Most companies attempt to measure their demand curves using different methods.
• Survey: Exploring the number of units consumers will buy at various proposed prices.
• Pricing cxperiments: Varying the prices of different products in a store or charging different prices for the same product in similar areas to determine how the company affects sales.
• Statistical analysis past prices: quantities sold and other factors can reveal the data.Longitudinal (over time) or cross-sectional (from multiple locations simultaneously).
• Price elasticity of demand: Marketers must know how responsive or elastic demand is to changing prices.If it is difficult to change demand with small changes in price, then demand is inelastic.
If demand changes significantly, then demand is elastic.The higher the elasticity, the greater the resulting volume growth and 1% reduction in price.If demand is elastic, sellers will consider lowering prices.
3. Estimating cost: demand sets an upper bound on the price a company can charge to produce it.The company wants to introduce a price that can cover the costs of production, distribution, and sales, including a reasonable rate of return for effort and risk.However, when companies price products that cover their full costs, profitability is not always the end result.Types of cost and production levels • Fixed cost: Costs that do not vary with production level or sales revenue.
• Variable cost: Costs that varies directly with the level of production.
• Total cost: This consists of the sum of fixed and variable costs for a certain level of production.
• Average cost: The cost per unit at that level of production; the average cost is equal to the total cost divided by the amount of production.
4. Analyzing Competitors' Costs, Prices, and Offers; the company must consider the prices of its closest competitors if the offerings from the company do not contain features not offered by the nearest competitors, the company must evaluate their value to customers and add that value to the competitors' prices.If a competitor's offering contains some features that the company doesn't offer, the company has to subtract its value from the company's price.So the company can now determine whether it can introduce more, the same amount, or less than the competitors.The introduction of a new price to a change in an old price can provoke a response from customers, competitors, distributors, and even the government.One way to assume competitors reacts in a standard way to prices that are set or changed.Now the company must research the current financial situation, recent sales, market, and competitors will adjust to price changes.

Choosing a pricing method;
The company chooses a pricing method that includes one or more of three considerations, there are six methods of pricing, namely: • Markup Pricing: Is a method that is usually used by traders whose business is to buy and resell the goods after first adding costs.Usually, the markup is the total operating costs and desired profit.In this system, the company determines the selling price by increasing the purchase price by a percentage.
• Perceived Value Pricing: An increasing number of companies are now basing their prices on perceived value.Companies must deliver the value promised by their value proposition, and customers must be able to accept this value as perceived value.
• Value Pricing: Several companies have implemented value pricing.They win loyal customers by charging a low enough price for a high-quality offering.One of the important types of value pricing is: a. Daily low pricing: Retailers adhering to a pricing policy, charge a constant low price with little or no price promotions and special sales.
b. High-low pricing: Retailers charge a higher price on a daily basis but then often run promotions where prices are temporarily lowered below that level.
• Going Rate Pricing: Going-rate pricing, the company bases most of its prices on competitors' prices, charges the same price, is more expensive, or is cheaper than the prices of its main competitors.
6. Determination of the price of the type of auction; Auction-type pricing is growing in popularity, especially with the growth of the Internet.One of the main goals of an auction is to get rid of excess inventory or used goods.
7. Selecting the Final Price: The pricing method narrows the range from which the company must select the final price.In selecting the price, the company must consider additional factors, including: • Impact of Other Marketers' Activities: The final price must take into account the brand's quality and advertising relative to the competition.Brands with relatively average quality but relatively high budgets can afford to charge a premium price.Brands with relatively high quality and relatively high advertising receive the highest price and vice versa.The positive relationship between high price and high advertising is strongest in the later stages of the product life cycle for the market leader.
• Company Pricing Policy: Prices must be consistent with company pricing policies.At the same time, the company does not refuse to determine pricing penalties under certain circumstances.
While these policies can often be justified, marketers must use them with care so as not to alienate customers unnecessarily.
• Profit and Risk Sharing Pricing: The seller has the option of offering to absorb some or all of the risk if it does not deliver the full promised value.8. Demand-based pricing.This method emphasizes price on factors that influence consumer tastes and decisions like or dislike.This method ignores factors that normally affect demand such as costs, profits, and competition.Customer demand itself is based on various considerations, including the ability of customers to buy (purchasing power), the willingness of customers to buy, and the position of a product in the customer's lifestyle, namely regarding whether the product is a status symbol or just a product, the benefits provided by the product to customers, and the prices of substitute products.
Included in this method are: • Skimming Pricing: That is a strategy that sets a high initial price when a new product is launched and the longer it will continue to fall in price.
• Penetration Price: Pricing strategy that determines a low initial price as low as possible or cheap with the aim of market penetration quickly and also building brand loyalty from consumers.
• Pricing that Affects Consumer Psychology: In the price concept, there are pricing that influences consumer psychology 25 , just focusing on considering three key topics in pricing, namely: i.The reference price is a comparison of the price being studied with an internal reference price they remember or with an external frame of reference such as an attached "regular retail price".
ii. Price-quality assumption: Many consumers use price as an indicator of quality.Image pricing is especially effective for sensitive products like perfumes, expensive cars, etc.
Or commonly referred to as the term in pricing, namely Prestige Price.Prestige Price is setting a high price in order to form a high product quality image which is generally used for shopping and specialty products.Examples: Roll Royce, Rolex, Guess, Gianni Versace, Prada, Vertu, and so on.
iii.Price ending.The price ending is also called the odd price or the price that ends with an odd number.Odd Price or odd price is one of the final pricing strategies that are currently widely used by business people and this is considered successful enough to attract many consumers to buy the products or services offered.However, the thing to remember is how the implementation of this strategy can not only benefit the company but also keep the interests of the consumers in mind.The odd price strategy is to set a price that is odd or slightly below a predetermined price with the aim that psychologically the buyer will think the product to be purchased is cheaper.Example: Goods that were valued at Rp. 100,000, -changed to Rp. 99,990,where consumers will probably see Rp. 99,990 is much cheaper than Rp.100,000.-Ashas been discussed, actually setting an odd price is a way to psychologically influence consumers to think that the price offered is cheaper than the actual price.9. Internal Cost-Based Pricing Method.In this method, the main determining factor is the supply or cost aspect, not the demand aspect.Prices are determined based on production and marketing costs added by a certain amount so as to cover direct costs, overhead costs, and profits.
10. Profit-Based Pricing Methods.This method seeks to balance revenues and costs in the pricing.This effort is carried out on the basis of a specific profit volume target or expressed in the form of a percentage of sales or investment.Other Businesses which will be managed by PT.TMB.

F. Business Management of PT. Tanjungpinang Makmur Bersama
This company runs several types of businesses with its main business being the rental of market stalls in the form of kiosks, tables, and several shophouses with tenants being traditional traders.In recent years, rental income has shown a downward trend, which in turn made the company suffer a loss, even though the overall results of the calculation show that the company has made a profit.However, if no act is taken, then this rental business is just like a timed bomb that will explode and paralyze PT.TMB.This study is more focused on the analysis of market stall rental business activities and the efforts that must be made so that recovery occurs and PT TMB could provide maximum results.The business activities of PT TMB is as follows:

Market Business (Rental of Market Stalls)
The market unit managed by BUMD   When attention is paid to point d, where PT.TMB is in a break even point position, it wouldn't be able to provide dividends to the Tanjungpinang City Government.For more details, from the four points aforementioned, an illustration of the calculation with the assumption that there is an increase in costs of 10% from the previous year can be given, as follows: As seen in table 4.14 above, to get a break-even point, PT TMB would still have to increase the rental rate by 87.20%, this is due to the previous year's losses that must be covered.The financial statements presented above only take into account expenses related to operations on rental activities, in order to obtain more objective calculation results.In the following, the rental price that must be paid by the trader is presented with several alternative options for increasing the rental price as described in the financial statements above.From the calculations and illustrations above, it can be concluded that in order to maintain the existence of PT.TMB, it needs full support from all parties by supporting the increase in the rental price, where apart from being able to grow BUMDs can also provide dividends to their shareholders, without having to ask for additional funds from the government as the owner of the company.Besides that PT.TMB still has to look for other alternatives as a new profitable business area to further develop the company, including conducting profitable business partnerships as has been going on so far in order to realize the company's vision.

E. Conclusion
In the company's activities, especially in the management of market stalls, the company suffered a loss, even though the company as a whole experienced a profit and was able to provide dividends to shareholders.The results of rental income in the last few years has shown a downward trend while operating costs have continued to increase.Therefore, it is necessary to make objective efforts to save the company from bankruptcy.One way to save the company is to make adjustments to rental rates which has never been done so far, despite the fact that in the current pandemic situation, it is difficult to increase rents because it affects all sectors, but rescue efforts must still be carried out.In the proposed adjustment of the rental price, the benchmark used is to see how much dividend will be given to shareholders, namely: 1.If the price for the kiosk/table/booth is increased by 138.8%, it will provide dividends to the Tanjungpinang City Government of Rp500,000,000.00.-a year excluding other businesses.
2. If the price for the kiosk/table/booth is increased by 91%, it will provide dividends to the Tanjungpinang City Government of Rp100,000,000.00.-a year excluding other businesses.
3. If the price for the kiosk/table/booth is increased by 85.1%, it will provide dividends to the Tanjungpinang City Government of Rp50,000,000.00.-a year excluding other businesses.
If the price rate for the kiosk/table/booth is increased by 79.1%, it will

3.
Prioritize the opportunity to acquire existing traditional market traders' stale business premises prior to the renovation or relocation of traditional markets; and 4. Evaluate traditional market management.The most important aspect of the policy is the presence of internal and external supporting factors.Internal factors are the rule of law from the center to the regions, whereas external factors are those directly involved with conditions in the field.With that being said, the government should be able to give fair regulations, fair treatment, and maximum empowerment to protect traditional market traders. 14D. Pricing

14
Dian Ferricha and H Fauzan, "How the Policy and Empowerment of traditional Markets in Indonesia," International Journal of Scientific & Technology Research 9, no 4 (2020): 3651.15 Kotler, Philip dan Nancy Lee, Pemasaran di Sektor Publik.(Jakarta: Jaya Cemerlang, 2007), 67.16 Muhammad Birusman Nuryadin, "Harga Dalam Perspektif Islam," Jurnal Ekonomi Islam 4, no. 1 (2007): 86 U N I V E R S I T A S G A D J A H M A D A related concepts.Utility is an attribute attached to an item that allows the item to meet needs, wants, and satisfaction.Price is the amount of money used to assess and obtain the product or service required by consumers. 17The term price in a service business can be found in various names.Universities or colleges use SPP (tuition); professional consultants use the term fee; banks use the term service charge; toll road services or transportation services use the term tariff; brokers use the term commission; apartments use the term rental; insurance uses the term premium; and so on.
differently.Businesses need to understand the characteristics both internal and external to the market tactfulness. 231.Internal Environmental Factors: In internal environmental factors 22 Kotler, 39. 23 Hasbullah and Mohamad Nasir, "Pricing of Medical Instrument Products for Domestic Production through Investment Feasibility Analysis," Comtech 12, no. 1 (2021): 11.M I M B A R H U K U M U N I V E R S I T A S G A D J A H M A D Athere are several fundamental factors that influence the company in determining the price of each product it produces, such as:• The company's marketing goals, as the main factor that determines the price, are the company's goals themselves; for example, maximizing profits, maintaining company survival, gaining a large market share, creating leadership in quality, overcoming competition, and carrying out social responsibility for society; and• In the marketing mix strategy, because price is one of the elements in the marketing mix, price determination should be further coordinated with other marketing elements such as product, place, promotion, costs, and organization.2.External EnvironmentalFactors: Other factors that need to be considered carefully by the company in setting the price of each product are external environmental factors because there are two main factors in this factor: • Nature of the Market and Demand.The party assigned to be responsible for setting prices should pay attention to and understand the nature of a market and the market demand for the products it produces.Wether the market included in a perfect competition market, monopoly market, oligopoly, and so on.• Competition.Competition needs to receive intensive attention from important parties in the company regarding pricing decisions.Michael Porter said five main forces influence the competition in an industry are: competition in the industry concerned, substitute products, customers, suppliers, and the threat of new entrants.

25
Dudu Oritsematosan Faith and Edwin Edwin, "A Review of the Effect of Pricing Strategies on the Purchase of Consumer Goods," International Journal of Research in Management, Science & Technology 2, no. 4 (February 2018): 93.
Source: PT.TMBBased on the data above, it can be concluded that the realization of revenue potential for income potential for 2019 is quite good, on average above 90%, but the trend of revenue received still show signs a decline when compared to revenues in previous years, as shown in the following table:

Figure 1 .
Figure 1.Receipt of Rental Income in the Last Three Years Guarding against errors in pricing.If the initial price setting a. Determine the price expected to be accepted by consumers based on estimates; and b.Estimation of sales volumes at various price levels; • Knowing the competition reaction in advance.The company's policy in determining the price must consider the competitive conditions of the goods in the market as well as other causal sources; • Goods produced by other companies.It must be recognized, that to gain a larger market share, pricing strategy must be supported by promotional activities and other activities; • Pricing Strategy.Companies use several pricing strategies to reach the appropriate target market: a. Skimming price.This policy aims to cover the research, development, and promotion costs.Therefore, this strategy is suitable for new products because: i.At the pilot stage (product life cycle).Price is not an 20 Ibid, 224 21 Stanton, W. J. (1981).Fundamentals of marketing; 6th edition, (New York: McGraw Hills Inc) namely, selling new goods in a competitive market; iii.b.Penetration price.Penetration pricing is a strategy to set the lowest possible price to achieve a high sales volume in a relatively short time.This strategy is likely to be more useful than skimming, if these condition exists in the market:

Profile of PT. Tanjungpinang Makmur Bersama PT
. TMB is a Regional Owned Company (BUMD) of Tanjungpinang City which was established in Tanjungpinang City in accordance with Deed Number 17 dated 20 February 2010 made before Notary H. Abdul Rahman, S.H. in Tanjungpinang and has received approval from the Ministry of Law and Human Rights of the Republic of Indonesia Number AHU-29347.AH. 01.01 of 2010 dated June 9, 2010.At the beginning of the operation, the Government of Tanjungpinang City as the owner of the company handed over regional assets in the form of cash, markets, several buildings, and land which were previously assets of the Bintan Regency Government managed by PT.Bintan Inti.The handover was successful with the Handover Report based pricing methods consist of four types: customary pricing, above, at, or below market pricing, loss leader pricing, and sealed bid pricing.E.

Table 2 . Facilities Available at Pasar Baru II
It is a 2 (two) storey building located on Jalan Pasar Ikan, Tanjungpinang City.This market was built in 1995 with a building area of 1,738.40m2.This building is 27 years old, and with its current physical condition, it is not suitable for use because it has long overdued its economic age of 20 years.

Table 7 . Facilities Available at Melayu Square
The main business of PT.TMBpr is a kiosk/booth rental service with the main target customers being traditional market traders in Tanjungpinang City.The rental price varies depending on the area of the leased object, its location, and its layout.The rental period also varies, namely on a daily and monthly basis.From the number of leased assets, an overview of potential rental income can be seen in the following table: