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product pricing
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Bid Pricing Cost Plus Pricing Customary Pricing Differential Pricing Diversionary Pricing Dumping Pricing Experience Curve Pricing Loss Leader Pricing Market Pricing Predatory Pricing Prestige Pricing Professional Pricing Promotional Pricing Single Price for all Special Event Pricing Target Pricing
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Cost is the most important part of pricing because it can quite often decide the profit margin which add up to form the price of the product. So, you would usually here the term Cost Cutting when it comes to large organizations to increase the profit margin but when costs significantly go up they do effect the price of the product but usually manufacturers would like to keep the price constant when there are minor adjustments in cost.
The advantage of full cost plus pricing is the higher return on investment. The disadvantage of full cost-plus pricing is lower demand for the products.
All is well
With odd pricing, the cost of the product may be a few cents lower than a full-dollar value
Cost plus pricing is based on full product cost plus desired profit margin to arrive at the product price, while marginal cost plus pricing makes use of the product's total variable cost plus desired profit margin to arrive at the product's price. Marginal cost plus pricing (or "mark-up pricing) is based on demand, and completely ignores fixed costs in arriving at the product's price.
The simplest and oldest way to determine price is cost-plus pricing. It is popular because it takes few resources and it provides a consistent rate of return and full coverage of cost.
The cost based pricing may overlook costs that are not monetary. Cost based pricing may overlook inefficiency Cost based pricing may not take advantage of consumer surplus.
Not essentially. The relevant costs are only those costs that will change as a result of accepting the order. In this case, full product costs will rarely be relevant. It is more likely that full product costs will be relevant costs for long-run pricing decisions.
Spencer A. Tucker has written: 'Pricing for higher profit' -- subject(s): Pricing 'The complete machine-hour rate system for cost-estimating and pricing' -- subject(s): Cost accounting, Pricing 'Cost-estimating and pricing with machine-hour rates' -- subject(s): Cost accounting, Industrial Costs, Prices
product pricing
Cost based pricing uses the costs that were invested in producing the goods. In market based pricing, supply and demand are the key factors that determine price.
I'm doing a school assignment so I have no clue! :)
Bid Pricing Cost Plus Pricing Customary Pricing Differential Pricing Diversionary Pricing Dumping Pricing Experience Curve Pricing Loss Leader Pricing Market Pricing Predatory Pricing Prestige Pricing Professional Pricing Promotional Pricing Single Price for all Special Event Pricing Target Pricing