Pricing Part Deux Chapter 20 Pricing Process Identify

Pricing- Part Deux Chapter 20

Pricing Process Identify Pricing Constraints Estimate Demand Revenue Determine Cost, Volume, & Profit Relationships Select an Approximate Price Level Set List/Quote Price Make Special Adjustments to List/Quoted Price

Step 4: Select an Appropriate Price Level n n Demand-Oriented Cost-Oriented Profit-Oriented Competition-Oriented

Demand-Oriented n n n n Price Skimming Penetration Pricing Prestige Pricing Price Lining Odd-Even Pricing Target Pricing Bundle Pricing Yield Management Pricing Source: http: //www. takefiveaday. com

Cost-Oriented n n n Standard Mark-up Pricing Cost-Plus Pricing Experience Curve Pricing

Profit-Oriented n n n Target Profit Pricing Target Return on Sales Pricing Target Return-on-Investment Pricing

Competition-Oriented Pricing n n n Customary Pricing Above-, At-, or Below-market Pricing Loss-Leader

Step 5: Set the List or Quoted Price n n One-Price v. Flexible. Price Policy Effects n Company n n Customer effects n Source: http: //www. clker. com/clipart-price-tag. html n Product-line pricing Perceptions Competitive n Price war

Step 6: Make Special Adjustments to the List or Quoted Price n Discounts Quantity Discounts n Seasonal Discounts n Trade (Functional) Discounts n n n $100 less 25/20/10 Cash Discounts n $1, 000 2/10 net 30

Step 6: Make Special Adjustments to the List or Quoted Price n Allowances Trade-in Allowances n Promotion Allowances n n EDLP

Step 6: Make Special Adjustments to the List or Quoted Price n Geographical Adjustments FOB Origin Pricing n Uniform Delivered Pricing n Single-Zone Pricing n Multiple-Zone Pricing n Freight Absorbed Pricing n Basing-Point Pricing n

Legal Issues n n n Price fixing Price discrimination Deceptive pricing Geographical pricing Predatory pricing