Cost Plus Pricing
Cost Plus Pricing is?
What is taking the unit price and adding a % mark-up?
Competition Based Pricing is?
What is setting a price similar to competitors?
Penetration Pricing is?
What is entering a market with a cheap price to gain market share?
Price Skimming is?
What is setting a high price when a product first enters the market, then coming down over time?
Psychological Pricing is?
What is using small price changes to change consumers perception of the product?
An example of Cost Plus Pricing is?
e.g.
A company like Coles Buying 500 2L bottles of Fanta for $1.23 each and selling them for $2.50 each
An example of Competition Based Pricing is?
e.g.
A company like Woolworths selling 2L Fanta bottles for $2.39, when Coles sells them for $2.49, so that they are very similar
An example of Penetration Pricing is ?
e.g.
IGA selling 2L bottles of Fanta for $1.39 when everywhere else sells them for above two dollars
An example of Price Skimming is?
e.g.
Big W starts selling 2L Fanta bottles for $3.99 but then lowering them to $2.29 over a month
An example of Psychological Pricing is?
e.g.
The school canteen lowering chocolate milk prices by twenty cents to make you happy their cheaper