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Chapter Seven Pricing Decisions
Chapter Seven Pricing Decisions
PRICING DECISIONS
3
The amount of money needed to purchase something
Price is that which is given in an exchange to acquire goods
or services.
Price is the only revenue generating element amongst the
4ps, the rest being cost centers.
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DHR
M
2009
WHAT IS PRICING?
4
other three aspects are product, promotion, and place.
Pricing is an important strategic issue because it is
related to product positioning.
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M
2009
How to Set a Price on a
Product or Service
Establish pricing goals
5
Estimate demand, costs, and profits
12 - 9
Time Horizon of
Pricing Decisions
12 - 10
Time Horizon of
Pricing Decisions
12 - 11
Target Price and Target Cost
12 - 12
Implementing Target Pricing
and Target Costing
12 - 14
Cost-Plus Pricing
12 - 15
Cost-Plus Pricing
12 - 16
Cost-Plus Pricing
12 - 17
Cost-Plus Pricing
12 - 18
Cost-Plus Pricing
12 - 19