This method of pricing figures out the average cost and adds a % to set the price
What is Cost-Plus pricing
100
These pricing strategies look at cost then set the price
What is Cost-based pricing
100
These pricing strategies set prices according to what their competition is doing
What is Competition-Based Pricing
100
These pricing strategies are the most popular when setting a price
What is Market-Based Pricing
100
This is a market-based pricing strategy. The price usually ends in .99
What is Psychological Pricing
200
An example of this pricing strategy is BOGO
What is Promotional Pricing
200
This is a market-based pricing strategy, when a business sells its products at a low price to break into the market
What is Price Penetration
200
This is a market based pricing strategy; the price is set high to gain the got-to-have it customers
What is Price Skimming
200
This is a market-based pricing strategy; when markets can be broken into different groups you charge these groups different prices
What is Price Discrimination
200
This is a market-based pricing strategy; when products are sold a VERY low prices to temp customers into a store
What are Loss Leaders?
300
This is how you figure profit
What is Price - TC
OR
Price - (VC+FC)
300
Costs that do not change as output changes
What are Fixed Costs
300
Costs that change as output changes
What are Variable Costs
300
What customers are WILLING and ABLE to pay
What is Price
300
Other names for this pricing strategy are full cost pricing or absorption pricing
What is Cost-Plus Pricing
400
An example of this agricultural markets
What is Going-Rate Pricing
400
An example of this is the price of the iPhone
What is Price Skimming
400
An example of this is WalMart setting some prices VERY low to get you in the store
What are Loss Leaders
400
Can be refereed to as Goldilocks pricing
What is Psychological Pricing
400
An example of this is the 4-door Kia car
What is Price Penetration
500
You use this pricing strategy when you have low variable costs
What is Marginal-Cost Pricing
500
A business CANNOT guarantee profit using this type of pricing method
What is Contribution Pricing
500
TC
What is FC + VC
500
This competition based pricing strategy exists when a business sets a price for its products and competitors feel compelled to match that price
What is Price Leadership
500
This competition-based pricing strategy is deliberately selling a product at below average COST with the intention of forcing a competitor out of the market