Pricing

• Key influences on price


  -target market

  -competitors price

  -type of market

  -location

  -demand

  -costs

  -costs of raw materials
• Pricing strategies


  -penetration pricing

  -psychological pricing

  -contribution pricing

  -price skimming

  -competitor pricing

  -cost-plus pricing
• Price skimming 


  -charging a high price initially, and then lowering the price overtime.
• Penetration pricing


  -launching products at a low price initially order to get customers to buy it.
• Competitor pricing

  -when a business sets its prices for its products and services based on what other firms in the market are charging.
• Cost-plus pricing

  -when a business considers how much a product has cost to produce and adds that cost on top of the actual product price.
• Contribution pricing

  -setting a price based on the variable cost of producing or buying a product.
• Psychological pricing

  -trying to make customers think the product I’d cheaper than it actually is.

  -e.g. selling a house for £699,000 rather than £700,000.