A cost pricing method used to set a product’s initial price that is used in association with Breakeven Analysis and the determination of minimum sales levels needed at different pricing points in order for a company to cover fixed costs.
A competitive pricing method in which initial price is set at levels intended to be above competitors’ prices.
A process for setting the initial price for a product that relies on analysis of market research to determine what customers perceive as an acceptable price and includes such methods as Backward Pricing, Psychological Pricing and Price Lining.
A form of promotional price adjustment that offers discounted pricing when customers purchase several products at the same time.
A form of sales promotion and a form of special pricing program, used in both consumer and business markets, that is designed to increase product demand by offering a short-term price reduction (i.e., sale price).
A process for setting the initial price for a product that primarily looks at production costs as the key factor for setting price and includes such methods as Markup Pricing, Cost-Plus Pricing and Breakeven Pricing.
A market pricing method that used to set a product’s initial price by considering customers’ perceived response to a price and includes Odd-Even Pricing and Prestige Pricing.
A cost pricing method used to set a product’s initial price by applying a fixed monetary amount to the cost of the product.
A form of promotional price adjustment where adjustments take place at the point-of-sale (i.e., at the time and place of purchase) for customers meeting certain criteria established by the seller (e.g., first time visitor to website).
A cost pricing method used to set a product’s initial price by applying a certain percentage to the cost of the product either through a Markup-on-Cost method or a Markup-on-Selling Price method.