Pricing Concepts

Kerrie Juneau Pricing Concepts incredulitys #1-3 As can be seen by the calculations on the attached excel spreadsheet, when the consumer toll of an item is lessen, memory board all told other values constant, the retailers monetary value, the interlocutors cost and the manufacturers value be also reduced by the same percentage. The monetary value was reduced by 6.25% and so were the other values. Also, when unbending and variable cost increase, keeping all other values constant, more units must(prenominal) be exchange to break-even or to make a profit. The fixed be were increase by 15%, the variable costs were increased by 5% and the number of units to be sold increased by a totality of 20% reflecting the total channelize in cost. When all of these changes occur together, the manufacturers price is swallow and more units must be sold. Question #4 caravan Westendorps Price Sensitivity verse sounds like a very useful alsol in ascertain pr ices to direct for wares and services. 4 questions are asked to consumers: 1. At what price would you remove the harvest-feast to a fault costly? 2. At what price would you consider the harvesting to be so cheesy you would not consider it? 3. At what price would you consider the product to start to get overpriced? 4. At what price would you consider the product to be a good value or bargain? The answers to these questions are object on a graph on which the percentage of respondents lies on the vertical axis and the prices on the horizontal axis. The point at which the too flash and expensive lines intersect is the PMC or write down limit of the price range. The PME is where the too expensive and inexpensive lines intersect. This is the fastness limit of the price range. Where the inexpensive and the expensive lines cross is the IPP where consumers make noise the product or service is cheap or expensive. Where too cheap and too expens ive intersect is the OPP or the price at whi! ch the price sensitivity for being too cheap is equal to the price sensitivity for...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay