Pricing

Charm pricing

When a price ends in .99 or .95.

Cost based pricing

Producing, distributing, and selling.

Customer value based pricing

Buyer’s perceived value.

Competition based pricing

Based on competitor’s prices.

Wholesale

The activity of buying and selling goods in large quantities and therefore at cheaper prices, usually to funeral homes who then sell them to the public.

Retail

The activity of selling goods to the public.

Consumer Value Index

The percentage derived by dividing the wholesale cost of the merchandise by the retail price of merchandise.

Merchandise Value Ratio

The relationship between the wholesale cost of the merchandise and the total cost to the consumer.

Determine total overhead, allocate gross profit from merchandise, determine case count, set prices on services, hypothetical revenue test, create packages, test consumers

What are the 7 steps of the price-setting sequence?