Price Structure Flashcards
Defines your pricing set up for prodocuts or services, including your core price points plus discounts, offers, and strategy
Pricing structure
Approach in products and services pricing which defines various prices, discounts, ofers consjstent with the organization hoas and strategy
Pricing structure
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 purchsed or the buyer’s demographics, such as income or location.
Single price strategy
Price difference between the cost and selling price of a product or service.
Markup pricing
We add this to the cost of goods or services to generate profit for any company
Markup price
We add this to the cost of goods or services to generate profit for any company
Markup price
Cost of goods or services + markup
Selling price
[(Sales price - unit cost)/(unit cost)] x 100 =
Mark up percentage
5 benefits of mark up pricing
- increase profits
- easy to formulate & implement
- simplify the calculations
- develop a perfect pricing strategy
- recover costs
How to use mark up pricing
- Determine unit selling or retail price
- Meet profit goals
- Establish pricing strategy
- Piquing customer interest
- Changing customer’s mindset
- Delivering what customers want
Selling a product or service at two or more prices, here 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 kf the product are priced differently but not accordidng to differences in their costs.
Product-form pricing
A company charges different prices for different locatikns, even though the cost of offering at each location is the same.
Location-based pricing
A firm varies its prices by the season, the month, day, and even the hour
Time pricing
