Business Management 4.5 ( Price)

Price

It refers to the value of good or services that the customers pays to purchase that particular product

Cost Plus Pricing

A pricing strategy adopted by business where the add a specific value or percent called mark up to the cost per unit output to determine their selling price.

Penetration Pricing

A pricing strategy adopted by business where they lower the selling price of the product to penetrate the market or to increase their market share

Loss Leader Pricing

A pricing strategy adopted by business where they sell their product lower than the production cost in order to promote sales of their other products.

Predatory Pricing

A pricing strategy adopted by businesses where they sell their products at very low prices in order to drive out their competitors. It is also known as destroyer pricing

Premium Pricing

Setting the price significantly higher than similar competing products usually for their quality or for their uniqueness.