PRICING STRATEGIES 1. Cost lie set: implemented by carefully determining either of the lives associated with carrying a office up and selling it to consumers then adding the desired profit to arrive at a selling price. a. Mark-up price 1) utilise primarily by wholesalers and retailers (organizations that debase for resale) 2) Simply adds a influence region to the cost of products 3) This percentage is usually applied to all products carried by the condescension b. Cost-plus pricing 1) utilize by manu incidenturers and service organizations 2) Examines cost for individual products or work then adds a well-worn mark-up 3) This schema is more modify than mark-up pricing due to the fact that products and services are fancyed each rather than a predetermined percentage being added crossways the board to the cost of all products and services 2. Demand oriented pricing a. closely sound when sel ling products with in viscoelastic demand b. Requires price planners to estimate the advertize customers place on products and set prices accordingly c. When selling products with elastic demand, an wrong estimation can undermine the success of a business 3. emulation oriented pricing a.
All price planners use rival oriented pricing to some degree. It would be short-sighted not to examine the competition when setting price b. This strategy is unique in that it does not consider costs and expenses or profit goals in the process 4. Psychological pricing 1. use by or ganizations that believe that customers base! their perceptions of products on price and that these perceptions squeal customer buying decisions a. Odd/even cent pricing: based on the principle that prices ending in laughable numbers ($5.99) communicate a bargain and prices ending in even numbers ($6.00) communicate quality. This technique is widely use by retailers b. Prestige pricing:...If you want to get a full essay, order it on our website:
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