PRICING Flashcards
What is promotional pricing?
where prices are reduced to give products a boost or to sell off old stock. Most commonly seen as sales in shops
What is penetration pricing?
when a price is set lower than the competitor businesses. Often used by new businesses to break into a market. This should only be seen as a short-term strategy
What is cost-plus pricing?
a pricing method that adds a percentage of profit to the total costs of making a product. This gives the selling price
What is competitor pricing?
when a price is set based on prices charged by competitor businesses for a similar product
What is price skimming?
where a new product is more advanced than that of competitors; a price is set high as to own the newest technology. Sometimes called ‘creaming’
