pricing strategy

price

determines the value of goods and service

price

means the money value of a product of service expresssed in terms of peso or centavos

the objective may be

sales-based, profit-based and status-quo based

sales-based

sales growth

prosit based

maziming profit

broad price policy

procedures, rules, and methods

penetration pricing

uses low prices to capture/attract the lagger market

skimming pricing

high prices to attract the market segment

cost based price strategy

sets prices by computing merchandise and services and overhead cost

deman based price strategy

researching consumer desires

competition based price strategy

relationto the competitor

implementing price strategy

readiness to sell the product

customary pricing

one price is maintaned over an extended period time, not easily cahnges

variable pricing

cost flactuations

the one-price policy

charged to all customers buying the product of the customer undersimilar conditions

flexible pricing

customer ability to negotiate or buy

odd pricing

prices set at levels below even values

price-quality association

high prices - high quality, low prices - low quality

prestige pricing

customers set prices floors

leader pricing

key items at low prices to gain customer loyalty

multiple unit pricing

enterprenuer offers discounts to consumers for buying in large quantities

price lining

firm sells two models of different quality and features at different prices

price budling

offers basic product, options and customer service for one total price

unbundled pricing

individual components

geographic pricing

prices are set depending on the distance

FOB factory

buyers pys for all freight charges regasless of the distance

uniform delivered pricing

when buyes pay the same delivered price for the same quantity

zone pricing

geographic zone

base-point pricing

cost transporting the goods is computed from the base point

terms of payments

price agreements, including discounts

list prices

qouted prices to customrs, as in catalog, price tags

escalator clause

contract allows price increase after the sale is concluded before delivery is made

the surchange

supplementary to list prices, additional charges

markups

increase, raising regular selling prices

markdowns

reductions from original selling prices, decrease