Pricing Stratigies Flashcards Preview

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Flashcards in Pricing Stratigies Deck (20):
1

Manufacturer selling prices is equal to....

Price to distributions

2

Retailer selling price is equal to...

Price to consumers

3

Skimming

Setting the price high and then continuing to lower it

4

Penetration Pricing

Offering product at lower price in hopes of getting into market

5

Odd even pricing

Price at odd number so consumers think it's lower

Example: $19.99

6

Competition Based Pricing

Setting price based on competitor

7

Demand oriented pricing

Setting pricing based on demand

8

Fixed cost

Cost that don't change

9

Variable cost

Cost that changes

10

Profit =

Total Revenue - Total Cost

11

Total Revenue =

Unit Price x Quanity

12

Total Costs =

fixed costs + variable cost

13

Break Even Analysis

A method to find amount of sales to cover all costs

14

Retail Price

Price the store sells at

15

Manufacturer

Company that produces the product

16

Wholesale Price

Price the manufacturer sells at

17

Price elasticity

Sensitivity based on price change

18

Elastic

Very sensitive to change

19

Inelastic

Not sensitive to change

20

Break Even Point =

Fixed cost
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Selling Price- variable costs per unit

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