Pricing methods

You charge the amount to cover production costs, plus extra for profit. It may not be a competitive price.

Cost Plus

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Setting a higher price to boost profits, eventually drop prices

Price Skimming

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Setting a low price to boost sales to break into the market.

Penetration

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Changing the price depending on the buyer, and their order size and/or geographical. E.g. Bus tickets

Discrimination

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The act of lowering the price temporarily in order to enhance sales. It might also be used to promote a new/particular product line.

Promotional

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Setting prices to appeal to customers e.g. 95p instead of £1

Psychological

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Setting a price at a loss to get people into the store, hey then might buy more. E.g. Milk

Loss leaders

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Other cards in this set

Setting a higher price to boost profits, eventually drop prices

Price Skimming

Setting a low price to boost sales to break into the market.

Changing the price depending on the buyer, and their order size and/or geographical. E.g. Bus tickets

The act of lowering the price temporarily in order to enhance sales. It might also be used to promote a new/particular product line.

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