Setting the Price of a Product: Policy, Determination ,Methods and Strategies! Types of Pricing: Pricing for products or services encompass three main ways to improve profits. These are that the business owner can cut costs or sell more, or find more profit with a better pricing strategy. When costs are already at their lowest and sales are hard to find, [...]
In this article we will discuss about the pricing incentives and discounting tactics used in business. Pricing involves decisions surrounding offerings, such as discounts, allowances, credit terms, payment periods, and other methods of payment. Types and sizes of discounts for wholesalers, retailers, or other traders vary considerably by industry. Generally, the discount rate, which reflects the intermediary's percentage margin on [...]
The different methods adopted for pricing the products can be classified into two major groups as charted below: Pricing Methods Based on Costs: 1. Total Cost or Full Cost Method of Pricing: The selling price is fixed on the basis of total costs. Total cost may be historical cost or standard cost. The method assumes that a price must cover [...]