Pricing- Part Deux
Chapter 20
Pricing Process
Identify Pricing Constraints
Estimate Demand and Revenue
Determine Cost, Volume, & Profit Relationships
Select an Approximate Price Level
Set List/Quote Price
Make Special Adjustments to List/Quoted Price
Step 4: Select an Appropriate Price
Level
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Demand-Oriented
Cost-Oriented
Profit-Oriented
Competition-Oriented
Demand-Oriented
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Price Skimming
Penetration Pricing
Prestige Pricing
Price Lining
Odd-Even Pricing
Target Pricing
Bundle Pricing
Yield Management
Pricing
Source: http://www.takefiveaday.com
Cost-Oriented
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Standard Mark-up
Pricing
Cost-Plus Pricing
Experience Curve
Pricing
Profit-Oriented
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Target Profit Pricing
Target Return on Sales Pricing
Target Return-on-Investment Pricing
Competition-Oriented Pricing
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Customary Pricing
Above-, At-, or Below-market Pricing
Loss-Leader
Step 5: Set the List or Quoted Price
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One-Price v. FlexiblePrice Policy
Effects
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Company
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Customer effects
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Source: http://www.clker.com/clipart-price-tag.html
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Product-line pricing
Perceptions
Competitive
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Price war
Step 6: Make Special Adjustments
to the List or Quoted Price
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Discounts
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Quantity Discounts
Seasonal Discounts
Trade (Functional) Discounts
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$100 less 25/20/10
Cash Discounts
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$1,000 2/10 net 30
Step 6: Make Special Adjustments
to the List or Quoted Price
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Allowances
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Trade-in Allowances
Promotion Allowances
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EDLP
Step 6: Make Special Adjustments
to the List or Quoted Price
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Geographical Adjustments
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FOB Origin Pricing
Uniform Delivered Pricing
Single-Zone Pricing
 Multiple-Zone Pricing
 Freight Absorbed Pricing
 Basing-Point Pricing
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Legal Issues
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Price fixing
Price discrimination
Deceptive pricing
Geographical pricing
Predatory pricing