Cost & Profit
The exchange of goods without the use of money.
What is bartering?
The point at which sales revenue equals cost and expenses of selling product.
What is break-even point?
This is when businesses charge a high price because they have an advantage with a new product; they will lower the price when competition enters the market.
What is PRICE SKIMMING?
Flexible terms to suit the individual customer's situation, with exchange privileges only; no returns.
What is LAYAWAY?
When a business sells the same items for different prices to different customers.
What is PRICE DISCRIMINATION?
The amount of money a business charges for items or services.
What is price?
This is also known as Return on Investment (ROI).
What is profit?
When several complementary products are packaged and sold in a single price.
WHat is BUNDLE PRICING?
Using this payment option immediately takes money from the customer's checking account.
What is a DEBIT CARD? (BANK CARD is also acceptable).
When a company has complete control of the entire supply of goods or services in a specific area of market.
What is a MONOPOLY?
The total revenue of a business, minus the expenses, over a specific period of time.
What is profit?
The difference between the retail price of the item and the cost of the item to the store.
What is margin?
A holiday sale, such as President's Day, is an example of this strategy.
What is PROMOTIONAL PRICING?
This is a like a loan, and the customer pays it off at the end of the month, or makes payments.
What is a CREDIT CARD?
This law outlawed price discrimination.
What is the CLAYTON ANTITRUST ACT OF 1914?
A product that is priced at or below cost, usually for a sales promotion.
What is a loss leader?
The product of Cost and Markup.
What is MARKUP AMOUNT?
This law outlawed monopolies.
What is the SHERMAN ANTITURST LAW?
This is the most popular form of payment.
What is CASH?
When suppliers get together to set the price of certain merchandise/services.
What is PRICE FIXING?
The amount of goods and services that consumers are willing to buy, and the amount of goods producers are willing and able to sell.
What is demand and supply?
When you add the COST and the Markup amount.
What is MARKUP PRICE?
This law prevents manufacturers from requiring a set retail price.
What is the CONSUMER GOODS PRICING ACT OF 1975?
This payment option is easily liquidated, and is an immediate payment; however, it is not very popular to use.
What is a CHECK? (What are CHECKS? is also acceptable).
iPads are currently selling at a rather high price, but next year they will probably be lowered. (Name the pricing strategy).
What is PRICE SKIMMING?