Pricing Strategies Flashcards Preview

Business Unit 2 > Pricing Strategies > Flashcards

Flashcards in Pricing Strategies Deck (21):
1

What is loss leader

Price not profitable but it’s used to attract customers

2

What’s is cost plus pricing

Add a % on a product so it can make a profit

3

What is price skimming

Setting a high price to boost profits

4

What is competitive pricing

Set a price for products based on rivals

5

What is penetration pricing

Set a low price to boost sales

6

What is a sponsorship

A company which pays to be associated with specific events

7

What is retained profit

Profit kept in the company

8

What is advertising

Business pays for messages of itself in maas and media

9

What is current liabilities

Money to be paid back within a year

10

What is net current assets

Money spent in a business in its day to day operations

11

What is profit margins

The amount by which revenue from sales exceed costs in a business

12

What is selling unwanted assets

The seller gains ownership of some form of cash

13

What is direct marketing

Forms make individuals contact with customers using junk mail

14

What is piece rate

Use a payment for each item produced

15

What is share issue

Companies pass on new shares to shareholders

16

What is capital

Wealth in the form of money or other assets owned by a person or an organisation or available for a purpose such as starting a company

17

What is cost of sales

Direct cost related to manufacturing of purchasing of a good that is sold to a customer

18

What is loso

Expenditure is more than revenue

19

What is profit sharing

Where employees receive a proportion of business profits

20

What is a profit

When revenue is more than expenditure

21

What is sales promotion

Encourages customers to buy now rather than later