The absorption cost is the portion that has to come out of the profits. You can usually pass on the cost of materials and labor, by adding them into the price of the product, but there is a limit to how much you can charge for the product. Above that limit, you might have to pay taxes, or transportation costs that cannot be added to the price of the product, and therefore, must be absorbed, lowering the profit.
What is the difference in Net and gross pricing in construction?
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.
between $50k and $60k dep. on exp.
each firm charges a different price to allow for difference fixed cost
production and pricing aspects
The term for the difference between Bid and Ask pricing measured in pips is called the "spread." It represents the transaction cost for trading a financial instrument.
in fact there is no diff.
What is the difference in Net and gross pricing in construction?
Asset pricing pinpoints what an item is worth. This is done in most major retail stores and will usually show in the difference in price between two of the seemingly the same items.
skimming pricing is for new or innovative product, the price at the begining is high and customers are not price sensitive. penetration pricing set a low price at the begining to gain a mass market, and the price will rise later. The customers are price sensitive.
The 2 industries are very competitive,they are constant proce wars going on.
No difference what so ever. The only difference is in pricing because road use taxes are added to motor fuel LPG.
A price strategy defines the initial price and gives direction for price movements over the product life cycle. The price policy is a strategy set for a specific market segment, based on a well-defined positioning strategy. Price tactics used to fine-tune a base price are the following: discounts (such as cash, quantity, and functional or seasonal discounts); allowances (such as promotional allowances); and rebates. All three are ways to induce buyers to do something they might otherwise not do. Geographic pricing tactics (such as FOB origin, uniform delivered, zone, freight absorption, and basing-point pricing) all moderate the impact of shipping charges as a portion of the product price. Special pricing tactics (such as single-price tactics, flexible pricing, price lining, professional services pricing, leader pricing, odd-even pricing, bait pricing, price bundling, and two-part pricing) can be used for a variety of reasons. For example, a business might decide to introduce a new product at a high skimming price, but use some price tactics such as rebates or freight absorption to induce trial.
Most of the difference between the two products is the name and pricing, as reviews indicate there is either none or a slight difference between speaker products. A warranty is recommended with the purchase of either brand.
There are internal and external factors for pricing. The internal factors include the manufacturing or purchasing costs while external factors depend on the demand of a product.
it could be that market orientated pricing is where you look at your target market and see what sort of prices they will be prepared to pay. Whereas company orientated pricing is i guess when the company look at their costs and sort out a profit margin and work out the price that they are going to charge to make sure that they are going to make profit.
Segmented pricing is when two prices are set for one product without a difference in production or distribution costs.