Pricing Strategies Flashcards
What is loss leader
Price not profitable but it’s used to attract customers
What’s is cost plus pricing
Add a % on a product so it can make a profit
What is price skimming
Setting a high price to boost profits
What is competitive pricing
Set a price for products based on rivals
What is penetration pricing
Set a low price to boost sales
What is a sponsorship
A company which pays to be associated with specific events
What is retained profit
Profit kept in the company
What is advertising
Business pays for messages of itself in maas and media
What is current liabilities
Money to be paid back within a year
What is net current assets
Money spent in a business in its day to day operations
What is profit margins
The amount by which revenue from sales exceed costs in a business
What is selling unwanted assets
The seller gains ownership of some form of cash
What is direct marketing
Forms make individuals contact with customers using junk mail
What is piece rate
Use a payment for each item produced
What is share issue
Companies pass on new shares to shareholders
What is capital
Wealth in the form of money or other assets owned by a person or an organisation or available for a purpose such as starting a company
What is cost of sales
Direct cost related to manufacturing of purchasing of a good that is sold to a customer
What is loso
Expenditure is more than revenue
What is profit sharing
Where employees receive a proportion of business profits
What is a profit
When revenue is more than expenditure
What is sales promotion
Encourages customers to buy now rather than later
