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What is a price what are the factors to be considered when setting a price what are general pricing approaches?
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∙ 16y ago
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∙ 16y ago
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Contrast the three general approaches to setting prices?
There are four general pricing approaches:1) mark-up pricing - is to have a fixed mark-up on the cost of the product to set the price, ex: retail stores2) value-based pricing (demand-based pricing) is setting price based on buyers' perceptions of value independent of cost, ex: Louis vuitton and rolex (nobody ever questioned how much it costs to make a rolex cost, price is not in relation to cost. people base it on how many people have it, brand name)3) value pricing: is offering the right combination of quality and good service at a fair price, ex: value meal menu4) comepetition-based pricing: is to set price following that of the industry leader ex: breakfast cereal (ex: kellogs)
What is the subject matter of microeconomics?
The subject matter of microeconomics includes several factors. Some of these factors are commodity pricing, factor pricing, and welfare theory.
What factor affect price?
What factors usually affect pricing?
What are factors that affect a product price?
"What factors affect the pricing of Fast Moving Consumer Goods?"
Pricing of Factors of Production?
Whenever we have touched on the pricing of productive factors we have signified the prices of their unit services, i.e., their rents. In order to set aside consideration of the pricing of the factors as "wholes," as embodiments of a series of future unit services, we have been assuming that no businessmen purchase factors (whether land, labor, or capital goods) outright, but only unit services of these factors. This assumption will be continued for the time being. Later on, we shall drop this restrictive assumption and consider the pricing of "whole factors." When all factors are specific there is no principle of pricing that we can offer. Practically, the only thing that economic analysis can say about the pricing of the productive factors in such a case is that voluntary bargaining among the factor-owners will settle the issue. As long as the factors are all purely specific, economic analysis can say little more about the determinants of their pricing. What conditions must apply, then, to enable us to be more definite about the pricing of factors? The currently fashionable account of this subject hinges on the fixity or variability in the proportions of the combined factors used per unit of product. If the factors can be combined only in certain fixed proportions to produce a given quantity of product, it is alleged, then there can be no determinate price; if the pro­portions of the factors can be varied to produce a given result, then the pricing of each factor can be isolated and determined. Let us examine this contention. Suppose that a product worth 20 gold ounces is produced by three factors, each one purely spe­cific to this production. Suppose that the proportions are variable, so that a product worth 20 gold ounces can be produced either by four units of factor A, five units of factor B, and three units of factor C, or by six units of A, four units of B, and two units of C. How will this help the economist to say anything more about the pricing of these factors than that it will be determined by bargaining? The prices will still be determined by bargaining, and it is obvious that the variability in the proportions of the factors does not aid us in any determination of the specific value or share of each particular product. Since each factor is purely specific, there is no way we can analytically ascertain how a price for a factor is ob­tained. The fallacious emphasis on variability of proportion as the basis for factor pricing in the current literature is a result of the prevailing method of analysis. A typical single firm is considered, with its selling prices and prices of factors given. Then, the pro­portions of the factors are assumed to be variable. It can be shown, accordingly, that if the price of factor A increases com­pared to B, the firm will use less of A and more of B in produc­ing its product. From this, demand curves for each factor are de­duced, and the pricing of each factor established.
What are the Factors involve in pricing general and special attendance on sub contractor in tendering and estimating?
Discuss factors in pricing general and special attendance on subcontractors?
What factors usually affect pricing?
What factors usually affect pricing?
Identify the General Influences on Pricing in Practice and discuss them in detail?
Identify the general influences on pricing in practice
What are the internal and external factors for pricing?
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.
What is retail pricing?
What is considered to be current keystone pricing rate
Contrast the three general approaches to setting prices?
There are four general pricing approaches:1) mark-up pricing - is to have a fixed mark-up on the cost of the product to set the price, ex: retail stores2) value-based pricing (demand-based pricing) is setting price based on buyers' perceptions of value independent of cost, ex: Louis vuitton and rolex (nobody ever questioned how much it costs to make a rolex cost, price is not in relation to cost. people base it on how many people have it, brand name)3) value pricing: is offering the right combination of quality and good service at a fair price, ex: value meal menu4) comepetition-based pricing: is to set price following that of the industry leader ex: breakfast cereal (ex: kellogs)
What are the various factors that affect the pricing of a product?
the pricing of a product is largely depended on the two main factors : - 1. Internal like cost of production profit margin etc 2. External like type of market, general economic conditions, competitors, nature of the product etc.
What is external factors affecting pricing?
Mostly competitor external prices affect pricing.
What is the subject matter of microeconomics?
The subject matter of microeconomics includes several factors. Some of these factors are commodity pricing, factor pricing, and welfare theory.
What are the factors involved in pricing general and special attendance on a contract?
Factors involved in pricing general and special attendance on a contract include the scope of services required, the level of expertise and experience of the attendees, the duration of the event, any additional services or accommodations needed, and market demand. Special attendance may command a higher price due to specialized skills or unique requirements. Pricing should also consider any travel expenses, equipment costs, and overhead expenses associated with providing the attendance services.
What are the factors affecting a menu?
The factors affecting menu pricing in any food establishment are mainly food costs. Other factors that affect menu pricing are rent, taxes, utilities, payroll, and many more.
Does General Electric use cost based or value based pricing approach?
value-based pricing approach
