Outcome # 4 // Pricing tactics Flashcards
Pricing tactis
short term approach
Select component five Cs
- Consumer
- B2B
- Pricing tactics/ Consumer
Price lining
Price bundling
Leader princing
Price lining
price floor and a price ceiling for an entire line of similar products
and then setting a few other price points in between to represent distinct differences in quality.
Price bundling
Selling more than one product for a single, lower price than the items would cost sold separately;
Leader pricing
build store traffic by aggressively pricing and advertising a regularly purchased item, often priced at or just above the store’s cost.
Consumer price reduction
Markdowns
Quantity discount for customers
Coupons and rebates
Markdowns
Reductions retailers take on the initial selling price of the product or service.
Get rid of obsolete merchandise
Quantity discount for customers
size discount
the larger the quantity bought, the less the cost per unit (e.g., per gram).
Coupons and rebates
Coupon
Provides a stated discount to consumers on the final selling price of a specific item; the retailer handles the discount.
rebate
portion of the purchase price is returned to the buyer in cash; the manufacturer, not the retailer, issues the refund.
- B2B tactics
Seasonal discount Cash discount Allowances Quantity discount Uniform delivered vs geographic pricing
Seasonal discount
offering an additional reduction order merchandise in advance of the normal buying season
Cash discount
reduction in the invoice cost if the buyer pays the invoice prior to the end of the discount period.
Allowances
advertising allowances
Price reduction to channel M when they accept to advertise and promote products from Productions
Listing allowances
Fees paid to retailers simply to get new products into stores or to gain more or better shelf space for their products.
It is Illegal
Quantity discount
Reduced price according to the amount purchased
Cumulative Quantity discount
Pricing tactic that offers a discount based on the amount purchased over a specified period and usually involves several transactions.
