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Which pricing method sets the price of the product on what the customer is willing to pay?
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What is the pricing method that establishes selling prices based on a stipulated rate above total production costs is?
Gross Margin Pricing
What is cost based pricing method?
Under cost based pricing method ,costs incurred in producing , & distributing the product is identified as direct costs & indirect costs . All the direct costs are calculated on goods sold (called prime costs) & added with indirect fixed & variable production overheads, administrative overheads, & selling & distribution overheads. when total cost of sales is arrived, a certain percentage of profits (depending on economic condition of customers , competitive factors , subsidies available , & return on investment expected ) is charged on total cost of sales. If subsidies fro government is available per unit of product it will be set-off against total cost to base profit percentage on net cost.
What is National Income Accounting as a method of National income?
Following are the method of national income accounting :-Product MethodExpenditure MethodIncome Method
How many methods of GDP are there?
the methods for GDP is of 3 types 1.product method 2.income method 3.expenditure method.
What are the advantages of DSDM?
This method is a short way of producing a project for product. In this method you can skip steps which save time and money.
What is base value?
Value based pricing is a method of pricing a product based on perceived value. This method sets aside the issue of production and distribution costs and focuses more on what the buyer is willing to pay. This method of pricing is the most popular way to bring more profits to a company's table.
What is Value Based Pricing?
Value based pricing is a method of pricing a product based on perceived value. This method sets aside the issue of production and distribution costs and focuses more on what the buyer is willing to pay. This method of pricing is the most popular way to bring more profits to a company's table.
What is the idea behind volume discounting?
A common method used by a company to price a product is volume discounting. The idea behind this pricing strategy is simple: If a customer purchases a large volume of a product, the product is offered at a lower price.
What is optional product pricing?
This pricing method allows companies to present a low base price that is capable of attracting customers while maintaining the possibility of generating high customer revenues by selling costly add-ons later.
Examples of by-product pricing?
a pricing method used in situations where a saleable by-product results in the manufacturing process. If the by-product has little value, and is costly to dispose of, it will probably not affect the pricing of the main product; if, on the other hand, the by-product has significant value, the manufacturer may derive a competitive advantage by charging a lower price for its main product.
What is Competition Based Pricing?
Competition based pricing is a price set by a company for a product to compete with another company's pricing. Production and distribution costs are ignored to drive demand towards another brand. This method of pricing can cause a long-term decrease in product perception and decrease a product's value for future profits.
Give the definition of target profit pricing?
Target-Profit-Pricing Target-profit-pricing method involves identifying the price at which a product will be competitive in the marketplace, defining the desired profit to be made on the product, and computing the target cost for the product by subtracting the desired profit from the competitive market price Jason
Is purchase funnel synonyms to product testing?
No - the purchase funnel is method of describing the customer journey to the point of buying a product
What is a term for which an item or feature for which a customer is willing to pay?
Value is defined as an item or feature for which a customer is willing to pay. This is said about lean manufacturing. Lean manufacturing is a method of eliminating waste in a manufacturing system. Value is the only aspect that is not waste.
What is defined as an item or feature for which a customer is willing to pay?
Value is defined as an item or feature for which a customer is willing to pay. This is said about lean manufacturing. Lean manufacturing is a method of eliminating waste in a manufacturing system. Value is the only aspect that is not waste.
What is defined as an item or feature for which customer is willing to pay?
Value is defined as an item or feature for which a customer is willing to pay. This is said about lean manufacturing. Lean manufacturing is a method of eliminating waste in a manufacturing system. Value is the only aspect that is not waste.
What are the advantages and disadvantages of cost based pricing method?
Cost based pricing method does not take into consideration supply/demand, or even market status, it is purely based on the cost of the production of the product dollars per unit of final product (raw materials, manual labour, etc..).So in one market, (if the product is a necessity) it could be advantageous if the current economical status would normally dictate a drop in prices.But on the other hand, could be the complete opposite, if the product is undervalued in a hot market."An object's value is calculated on how much awilling buyer would pay a willing seller for it" - Personal Quote.
