logging in or signing up pricing tctuynh Download Post to : URL : Related Presentations : Let's Connect Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Copy embed code: Embed: Flash iPad Dynamic Copy Does not support media & animations Automatically changes to Flash or non-Flash embed WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 749 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: February 26, 2010 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: pavanyadav2211 (47 month(s) ago) hiiiiiiiiiiiiiiiiiiiiiii Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Pricing : Pricing Pricing Objectives Pricing Methods Pricing Strategies Can Firms Control Their Prices? : Can Firms Control Their Prices? Supply and demand Price and non-price competition Buyer’s perception of price Pricing Objectives : Pricing Objectives Survival Profit Maximization Target Return on Investment (ROI) Market Share Goals Status Quo Pricing Pricing Methods : Pricing Methods Cost-based pricing Demand-based pricing Competition-based pricing Cost-Based Pricing : Cost-Based Pricing Markup – price is determined by adding an amount to the wholesale price Markdown – subtracting an amount from the retail price Markup & Markdown : Markup & Markdown Giant Eagle buys artichoke hearts for $1.77 a can and wants to add 40% to the wholesale cost, what would the retail price be? Giant Eagle sells olive oil for $10.50 a bottle and wants to mark down the price 20%, what would the markdown price be? Advantages & Disadvantages of Cost-Based Pricing : Advantages & Disadvantages of Cost-Based Pricing Advantages: Easy to apply Commonly used by retailers and wholesalers Disadvantages: Difficult to determine an effective markup percentage Separates pricing from other business functions Breakeven Analysis : Breakeven Analysis Answers the question, “What is the lowest level of production and sales at which a company can break even on a particular product?” Breakeven quantity – the number of units that must be sold for the total revenue to equal the total cost (for all units sold) Breakeven Analysis : Breakeven Analysis Fixed costs – $40,000 Variable costs – $60 per unit Selling price – $120 per unit What is the breakeven quantity? Demand-Based : Demand-Based Pricing that is determined by how much customers are willing to pay for a product or service This method results in a high price when demand is strong and a low price when demand is weak May be differentiated based on considerations such as time of purchase, type of customer or distribution channel Advantages and Disadvantages of Demand-Based Pricing : Advantages and Disadvantages of Demand-Based Pricing Advantage: Potential for higher profits Disadvantage: Management must be able to estimate demand at different price levels, which may be difficult to do accurately Segments must be separate enough so that those that buy at lower prices can’t sell to those who buy at higher prices Competition-Based : Competition-Based Pricing that is determined by considering what competitors charge for the same good. Once you find out what your competition is charging, you must determine whether to charge the same, slightly more, or slightly less. Pricing Strategies : Pricing Strategies Psychological pricing Product line pricing Promotional pricing Discounting Psychological Pricing : Psychological Pricing Odd-number pricing Multiple-unit pricing Reference pricing Bundle pricing Everyday low price (EDLP) Customary pricing Product Line Pricing : Product Line Pricing Establishing and adjusting the prices of multiple products within a product line Captive pricing – basic product low, but items required to operate or enhance it can be at a high level Premium pricing – highest quality or most versatile version is given the highest price Price lining – setting a limited number of prices for selected groups or lines of merchandise Promotional Pricing : Promotional Pricing Price leaders Special event pricing Comparison discounting Discounting : Discounting Trade discounts Quantity discounts Cash discounts Seasonal discount Allowance You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.