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Pricing- Part Deux

Learn about the different price levels and strategies to consider when setting prices, including demand-oriented, cost-oriented, profit-oriented, and competition-oriented approaches. Explore various pricing techniques such as price skimming, penetration pricing, prestige pricing, and more.

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Pricing- Part Deux

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  1. Pricing- Part Deux Chapter 20

  2. Pricing Process

  3. Step 4: Select an Appropriate Price Level • Demand-Oriented • Cost-Oriented • Profit-Oriented • Competition-Oriented

  4. Demand-Oriented • Price Skimming • Penetration Pricing • Prestige Pricing • Price Lining • Odd-Even Pricing • Target Pricing • Bundle Pricing • Yield Management Pricing Source: http://www.takefiveaday.com

  5. Cost-Oriented • Standard Mark-up Pricing • Cost-Plus Pricing • Experience Curve Pricing

  6. Profit-Oriented • Target Profit Pricing • Target Return on Sales Pricing • Target Return-on-Investment Pricing

  7. Competition-Oriented Pricing • Customary Pricing • Above-, At-, or Below-market Pricing • Loss-Leader

  8. Step 5: Set the List or Quoted Price • One-Price v. Flexible-Price Policy • Effects • Company • Product-line pricing • Customer effects • Perceptions • Competitive • Price war Source: http://www.clker.com/clipart-price-tag.html

  9. Step 6: Make Special Adjustments to the List or Quoted Price • Discounts • Quantity Discounts • Seasonal Discounts • Trade (Functional) Discounts • $100 less 25/20/10 • Cash Discounts • $1,000 2/10 net 30

  10. Step 6: Make Special Adjustments to the List or Quoted Price • Allowances • Trade-in Allowances • Promotion Allowances • EDLP

  11. Step 6: Make Special Adjustments to the List or Quoted Price • Geographical Adjustments • FOB Origin Pricing • Uniform Delivered Pricing • Single-Zone Pricing • Multiple-Zone Pricing • Freight Absorbed Pricing • Basing-Point Pricing

  12. Legal Issues • Price fixing • Price discrimination • Deceptive pricing • Geographical pricing • Predatory pricing

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