Here is advice on pricing strategy for small businesses from the Federal Consumer Information Center and the Small Business Administration: Pricing your products and services There are several pricing strategies. Select the strategy that will make your goods or services the most competitive and will help you reach your profit goals. Retail cost and pricing A common pricing strategy for small businesses is to simply follow the manufacturer's suggested retail price. The suggested retail price is easy to use, but it doesn't adequately account for the element of competition. Pricing below competition This strategy reduces the profit margin per sale. It requires you to reduce your costs and: * obtain the best prices possible for raw materials or inventory, * locate the business in an inexpensive area or facility, * closely control inventory, * limit product lines to fast-moving items, * design advertising to concentrate on price specials, and * limit non-essential services. One word of caution: pricing goods below the competition can be difficult to sustain because every cost component must be constantly monitored and adjusted. It also exposes you to pricing wars. A competitor can match the lower price, leaving you out in the cold. Pricing above competition This strategy is possible when price is not the customer's greatest concern. Factors important enough for customers to justify paying higher prices include: * service considerations, including delivery, speed of service, satisfaction in handling customer complaints, knowledge of product or service, and helpful, friendly employees; * a convenient or exclusive location; and * exclusive merchandise. Price lining This pricing strategy targets a precise segment of the buying public by carrying products in a specific price range only. For example, a store may wish to attract customers willing to pay more than $50 for a purse. Price lining has certain advantages: * ease of selection for customers, and * reduced inventory and storage costs. Multiple pricing This approach involves selling a number of units for a single price, for example, two items for $1.98. This is useful for low-cost consumer products, such as shampoo or toothpaste. Many stores find this an attractive pricing strategy for sales and year-end clearances. Cost factors and pricingEvery component of a service or product has a different, specific cost. Many small businesses fail to analyze each component of their commodity's total cost, and therefore fail to price profitably. Once you do this analysis, set your prices to maximize profits and eliminate any unprofitable services. Cost components include material, labor and overhead costs. Material costs are the costs of all materials found in the final product, such as the wood, glue and coverings used in manufacturing a chair. Labor costs are the costs of the work that goes into manufacturing a product. An example would be the wages of all production-line workers producing a certain commodity. The direct labor costs are derived by multiplying the cost of labor per hour by the number of personnel hours needed to complete the job. Remember to use not only the hourly wage but also the dollar value of fringe benefits. These include social security, workers' compensation, unemployment compensation, insurance and retirement benefits. Overhead costs are those not readily identifiable with a particular product. These costs include indirect materials, such as supplies, heat and light, depreciation, taxes, rent, advertising, transportation and insurance. Overhead costs also cover indirect labor costs, such as clerical, legal and janitorial services. Be sure to include shipping, handling and/or storage as well as other cost components. Part of the overhead costs must be allocated to each service performed or product produced. The overhead rate can be expressed as a percentage or an hourly rate. It is also important to adjust your overhead costs annually. Charges must be revised to reflect inflation and higher benefit rates. It's best to project the costs semiannually, including increased executive salaries and other costs.
A for e2020 students
e2020 answer is B
Predatory pricing is what you call a pricing strategy where you offer the same products and services for a lesser price than your competitors.
Price competition is a price war between competitors. Companies try to offer products/services on low price as compare to competitors in order to gain market share. Price war is very common in FMCG products.
it is when the price mechanism allocate products or services to people who willing to pay the most.
products are tangible whereas services are intangible.... products can be bought ,services can be felt.... products are non-perishable,services e perishable... products are non-ephemeral....services are ephimeral... products are countable, services are not countable.... products can be owned.. but service cannot be owned......
Price mechanism is the system where supply and demand are what determines prices of products or services. Unemployment, inflation, and uneven distribution of resources are disadvantages of price mechanism.
it is the practice of marketing two or more products/services in a single package at a single price. eg. insurance companies providing multiple policies at one rate
On the internet, a price comparison service also known as shopping comparison or price engine allows individuals to see different lists of prices for specific products. Most price comparison services do not sell products themselves, but source prices from retailers from whom users can buy.
prices of goods and servicesincome of consumersprices related to goods and servicesexpected future price of productsnumber of consumers in a market
This is the measure of how the prices of domestically produced goods and services are. This deflator will occur when there are fewer products being produced.
convenience products, shopping products, specialty products, unsought products, industrial products, materials and parts, capital items, supplies and services
The price index is a simple sum - the sum of the prices for a list of articles and services considered to be "typically" used by a family. The real trick consists in (a) defining what products and services (and in what quantities) are "typical", and (b) finding out the actual prices.
goods and services whether it may be anything price will be there for it
why do people need to buy and sell products or services?
Well, I would recommend using AVG because they offer good protection and a variety of services. They also offer their services and products for an incredibly reasonable price.
lowering your price would mean that your contribution would be lower. This means that you will need to sell more products or services to get to break even point or make a profit.
A unique product. Your selection of products. Your location. Your facility. Your services. Your warranty or guarantee. Your price.
Do the assignment yourself you stupid fail.
The price of services will decrease.
If you are running a business website, you need to show what your products and services are. You should do this in a clear and concise way.
Well, I would recommend using WinRAR because they offer a variety of services. They also offer their products and services for an incredibly reasonable price or at a charge of no fee at all.
Well, I would recommend purchasing home theatre systems manufactured by LG because they offer a variety of services. They also offer their products and services for an incredibly reasonable price.
Managers and governments need to understand what prices to set their products and services. If they know how elastic their product is then they can maximize the price without turning customers away.
Normally,human wants are unlimited that's why they always try to use these things from which they would get more satisfaction at affordale price.And in case of the price of that products/services is high or more than their thought,then they use these products/services at minimal level.And if,the price of the same products/services is fall down/decreased,then they use these at maximal level.Beacuse,According to Economics definition, "Demand of a product/service increases, when the price of that product/service fall down or decreases and vice-versa. Chandra Sekhar Malik MFC(2010-2012) In ASMIT,BBSR(Odisha).