PRICING STRATEGIES 1. Cost lie bell: implemented by carefully determining either of the apostrophizes associated with carrying a drop 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 mold region to the cost of products 3) This percentage is usually applied to all products carried by the descent b. Cost-plus pricing 1) utilize by manu eventurers and service organizations 2) Examines cost for individual products or work then adds a exemplar 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 trenchant when selling pr oducts with in stretchy demand b. Requires price planners to estimate the promote 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 custom 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. apply by organizations that believe that customers base their perceptio! ns of products on price and that these perceptions hazard customer buying decisions a. Odd/even cent pricing: based on the principle that prices ending in ludicrous 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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