Pricing Flashcards
what is actual cost fees cost?
staff, materials, equipment, facility usage, transportation
what is non cost related fees charged?
fee levels for similar activities, consumer demand, social benefits
what is pricing objective?
maximizing profits, minimizing costs, max number of adopters/participant, social equity, demarketing
what is penetration pricing?
where the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth ex) variable fees, scholarships, work exchange, encourage participation
what is neutral pricing?
price doesn’t encourage or discourage
what is skim pricing?
pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time
what is cost based pricing (full cost pricing)?
established profit margin
what is competitive based pricing?
based on prices of other similar products
what is demanding pricing?
what the market bears
what is value based pricing?
based on price sensitivity (evaluation of target market demand a varying price points)
Pricing triangle
The market place, Organizational Priorities, and The program
what is break even analysis?
the point at which revenues generated from the sales of a service meet the expenses … Helps with the understanding of the relationship between direct and indirect, fixed and variable costs in calculating the price of a program.
how to overcome price challenges?
taxes, grants, contract programming, joint sponsorship, special interest associations, volunteers, gifts
