Price Structure Flashcards
it defines your pricing setup for products or services, including your core price points plus discounts, offers, and strategy.
Pricing Structure
an approach in products and services pricing
which defines various prices, discounts, offers consistent with the organization goals and strategy.
Pricing Structure
refers to a pricing strategy in which a company or a retailer offers a single, uniform price for a
product or service to all customers,
regardless of the quantity purchased or
the buyer’s demographics, such as
income or location.
Single-price strategy
a price difference between
the cost and selling price of a product or
service. Simply, you can also consider adding a
percentage to the cost price of any product to
form its selling price.
Markup Pricing
Why do we add this markup price
to the cost of any goods or services?
To generate profit for any company, firm, or individual
Cost of Goods or Services + Markup =
Selling Price
What is the formula for Markup Percentage?
[ (sales price - unit cost) / (unit cost) ] × 100
Benefits of Markup Pricing?
• Increase Profits
• Easy to formulate and Implement
• Simplify the Calculations
• Develop a perfect Pricing Strategy
• Recover Cost
How to use Markup Pricing Strategy?
- Determine Unit Selling or Retail Price
- Meet Profit Goals
- Establish Pricing Strategy
- Piquing Customer Interest
- Changing Customer’s Mindset
- Delivering what customers wants
Selling a product or service at two or more
prices, where the difference in prices is not
based on differences in costs
Segmented Pricing
different customers pay different prices for the same product or service
Customer-segment Pricing
different versions of the product are
priced differently but not according to differences in their costs.
Product-form Pricing
a company charges different prices for different locations, even though the cost
of offering at each location is the same.
Location-based Pricing
a firm varies its price by the season, the
month, the day, and even the hour.
Time Pricing
