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Pricing Strategies
These terms come from Unit 7: Pricing Strategies of ACE Frameworks.
Term | Definition |
---|---|
Discounts | reductions in a price given to the customer in exchange for performing certain marketing activities or accepting so mething other than what would normally be expected in the exchange; may also be referred to as allowances |
Flexible Pricing | allows customers to negotiate price within a price range |
Gross Profit | net sales minus the cost of goods and services sold |
Markdown | a reduction from the original selling price |
Markup | an amount added to the cost of a product to determine the selling price |
Market Share | the portion of the total market potential that each company expects in relation to its competitors |
Net Profit | the differenc e between the selling pric e and all costs and operati ng expenses associated with the product sold |
Penetration Price | a very low price designed to increase the quantity sold of a product by emphasizing the value |
Price | the actual amount customers pay and the methods of increasing the value of the product to the customers |
Price Skimming | is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time |
Quantity Discounts | incentive offered by a seller to a buyer for purchasing or ordering greater than usual quantity of goods or materials |
Sales Tax | a tax based on the cost of the item purchased and collected directly from the buyer |