Finance Flashcards
1
Q
What are the pricing strategies?
A
- Competitive pricing,
- Cost plus pricing,
- Loss leader pricing,
- Penetration,
- Price skimming,
- Promotional pricing.
2
Q
What is competitive pricing?
A
Setting your prices to the same as your competitors.
3
Q
What is cost plus pricing?
A
Adding a percentage to the cost of the product.
4
Q
What is loss leader pricing?
A
When the product is sold for less than the cost to make the product to grow the business.
5
Q
What is Penetration pricing?
A
Setting a relatively low price to boost stales until it is popular in the market where price rises a bit, it is often used when a product is launched or for growth.
6
Q
What is price skimming?
A
Setting a relatively high price to gain profits then gradually reducing it over time. This is often used by premium brands when a new product is launched.
7
Q
What is promotional pricing?
A
Lower a price for a limited time.
