Flashcards
Pricing methods with evaluation
Cards in this deck (8)
- 1Cost PricingThe business bases its price on what it cost them to purchase/produce it.
- 2Positive of cost pricingIt is an easy method to use and ensures that profits will not be affected if costs increase.
- 3Negative of cost pricingCustomers may not appreciate it if the business constantly changes its prices
- 4Market PricingThe business sets sells the product for a price that people ("The market") are willing to pay. Eg real estate.
- 5Positive of market pricingThe product is sold at its maximum price
- 6Negative of market pricingIt is the consumer and not the business who end up setting the price.
- 7Competition-based pricingPrices are based on the prices charged by competitors.
- 8Positive of competition based pricingIt allows new businesses to establish a market share.
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- Year 12 Economics and Business Flashcards on Pricing methods with evaluation, created by Rory Coverdale on 13/03/2017.
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- Rory Coverdale
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