Answered: Select a basis for pricing your product…

Select a basis for pricing your product (cost, demand, and/or competition). How will you know when it is time to revise your pricing strategy?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter11: Strategic Cost Management

Section: Chapter Questions

Problem 13DQ

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Concept explainers

Customary Pricing

There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:

Multiple Unit Pricing

“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”

Question

Select a basis for pricing your product (cost, demand,
and/or competition). How will you know when it is time
to revise your pricing strategy?

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