Factors Affecting Price

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  • Created by: izzy
  • Created on: 29-06-12 20:59

Cost

A firm needs to make a profit, so it can't afford to sell below the cost of production.


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Product Life Cycle

  • Launch = Low price
  • Growth = Increased price
  • Maturity/Decline = Discounted price
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Competition

A firm needs to be aware of what competitors are charging.

Customer

A valued customer may be offered a special price.

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Market

Different places or conditions mean different prices.

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Service

The level of service provided affects the price.

A meal in a posh restaurant will cost more than one at a fast food place!

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