Pricing Strategies Markup Pricing

Definition

Example

ABC Corporaion desires to establish a 50% mark-

up to their merchandise. The total operating
costs of the company in producing their
Situation merchandise per unit is P500. How much would
be the selling price per product?

Analysis
 Cost-Based Pricing
The management of XYZ enterprise decided to
set a profit margin of P80 to every unit of their
products. The total cost in producing their
product is P200. How much would be the selling
price per product?
Break-even Pricing
Atlantic Inc. desires to dtermine the break-even
point for their main product. The total fixed cost
in producing their main product is P50,000 while
the profit-volume ratio is 10%. How much would
be the break-even point?
 Rate-Based Pricing Bundle Pricing

As a consultant in a local firm, Ana receives an A local eatery sells spaghetti for P50 and garlic
hourly rate of P150. The average working hours bread for P20 separately. Propose a bundle price
of Ana in a day is five (5) hours. How much total for the two products.
pay would Ana receive in a day?
 Psychology Pricing
Ending prices with an odd number gives shoppers the
perception that they’re getting a deal. The number 9 reigns
supreme when it comes to many retail pricing strategies.
From a customers’ perspective, it looks the retailer has
slashed every cent possible off the price.

Global Industries desires to establish a price that would be

more pleasing to the eyes of their customers. The original
price of their apparels is P1,000. Propose a market price for
the apparels of the company based on the concept of
psychology pricing.
 Optional Product Pricing

CNG Travel Agency desires to create optional product pricing

for their customers. Originally, the company only provides
itinerary services to their clients. Propose an additional
service for the company based on the concept of optional
product pricing.