ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
competition based pricing
|
|
|
price floor
|
|
|
price ceiling
|
|
|
cost plus pricing
|
Detailed explanation-1: -Cost-plus pricing is also known as markup pricing. It’s a pricing method where a fixed percentage is added on top of the cost it takes to produce one unit of a product (unit cost). The resulting number is the selling price of the product.
Detailed explanation-2: -Manufacturing. Manufacturing companies thrive on cost-plus pricing. Because the products they create have relatively predictable fixed costs (such as labor, machine maintenance, raw materials), it’s easy to assign a profit margin percentage using markup pricing on top that sustains the business.
Detailed explanation-3: -Cost-plus pricing. Calculate your costs and add a mark-up. Competitive pricing. Set a price based on what the competition charges. Price skimming. Set a high price and lower it as the market evolves. Penetration pricing. Value-based pricing.