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Supply and Demand, Want and Need, and the Cost to Produce. (cost to make)(demand, who will buy it)(want, who needs it)(supply amount you could previde) ------------------------------------------------

I did GCSE's last year, and while i was revising wrote down some notes on pricing strategies and all the different ones.. this could be useufl to you..

# Cost - Plus Pricing - The company will work out how much it costs them to make of buy in a product then add on an amount for the profit. # Our Base Pricing - Some companies offer services and they need to set prices for those services. It is normal for service companies to set a price per-hour. E.g. Solicitors, plumbers, gardeners, electricians. # Skimming - Some times when a product is launched, a high price is set, but as more customers buy it, the price may need to be lowered, to maintain sales, e.g. PSP's, DVD's, games, game consoles etc. # Penetrating Pricing - A low price, maybe used at the start to attract customers to an introductory price. As people become more familiar with the product the price is raised to a normal level # LostLeaders - Shops often set low prices on certain products to attract customers in, they hope that when customers are in they will buy other normal price products, e.g. Iceland's Roast Dinner, Special Offers. # Destroyer Pricing - This happens when a large company deliberately sets very low prices hoping the competition cannot match them. They hope to put the competition out of business. A* Extra A products price has strong connections with its point in the life cycle. In the introduction phase, a skimming or a penetration price might be used; in the maturity phase, promotional and discount prices may be used; and in the decline phase, sale, or mark-down prices may be used to get rid of unwanted stock. I got all this from my books..

Matt

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16y ago
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Q: What is a pricing strategy?
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