4.4+Price

=Pricing Strategies.=

The Price unit refers to the methods companies can use to set their prices and for higher level, you need to know a few extra strategies and about demand, supply and elasticity.



Cost based.
Cost Plus: Taking the Cost and adding a desired percentage as profit. Marginal Cost Pricing: Is the addition to the total cost of producing one additional unit of output. Contribution: Ensuring the variable costs are covered in addition to towards fixed costs.

See Gaby's Document: = =

Competition Based.
Leadership pricing: Large companies are price makers, while smaller companies are price takers. Predatory pricing: Setting the cost of your product lower than the average cost of a market to harm other businesses. Going rate pricing: when businesses prices their products at whatever their competition are doing. (Accepting the standard price,)

See Jasmine's Document:

Market Based.
Penetration Pricing: Skimming Pricing:

See Sam's Document:

Price Elasticity of demand