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Affordable housing Project in Jaipur by www.vivanreality.com is a very
important of marketing strategy, be it a consumer or industrial product.
Price is the value the customer pays in exchange of the order placed
for the product or services. From buyers’ point of view the price is;
 Product quality
 Delivery
 Service
 Economic impact it will have on the firm and the efficiency of
the product on their production and products
While from sellers point of view, the price is;
 Turnover and profitability of the company
 Margins necessary to support other aspects such as post-
purchase service and technical assistance
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The factors influencing Affordable housing Project in Jaipur by
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1. Customer demand – demand for industrial products is derived
from the demand of the consumer products, consumer durable
products or any other products including raw materials etc.
• A product may have different applications in different
industries
• The use therefore decides the requirements of the industry
• The seller therefore needs to;
I. Analyse benefits that accrue to customers
II. Analyse cost to customers
III. Analyse the sensitivity of price to customer
2. Nature of derived demand – the prices of the raw materials or
components to OEMs will not have any effect on the end
products and sometimes the price reduction may have some
inverse effect as the buyers may think that you have comprised
on quality
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3. Competition – the type of existing and potential competition
• Any decision on Affordable housing Project in Jaipur by
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decisions that the competitors will take
• This will be affected to the extent;
I. The costs of competitors
II. That the competitors will take time to decide
III. The existing commitments the competitors have
already made to other customers
IV. The volumes of business and
V. The capacities available with the supplier
VI. Loss of share if competitors do not increase prices
3. Cost & profit relationship – The costs are of two types, the
fixed and the variable. Over and above the firms make profits.
The firms. The decisions of Affordable housing Project in Jaipur
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• The orders are sometimes accepted if these cover the
direct costs and some contributions to overheads
5. Cost analysis – the perfect way of Affordable housing Project
in Jaipur by www.vivanreality.com the product normally for the
units producing only against specific orders (e.g. plant and
machinery or every time a different product)
• The fixed and variable costs are estimated
• The utilisation of capacities and the idle time costs
• The utilities cost at actual
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STRATEGIES
New product
• A lot of development costs are involved and therefore the
companies need to recover over a period (basically over
certain number sold, also called as cost amortisation)
• The strategies could be same as
I. Skimming
II. Penetration
III. Long term point etc
• PLC is considered (introduction, growth, maturity or decline)
• The best way is to adopt a flexible Affordable housing Project in
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commitment from customers with regard to period of contract,
quantum of business, support and other involvement etc
• The types of discounts e.g. trade discounts, annual discounts,
quantity discounts, cash discounts etc.
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Affordable housing Project in Jaipur by www.vivanreality.com POLICIES
Break-even Analysis
• Fixed costs – cost of capital (land, building, plant & machinery, salaries and overhead
costs of administration and other costs (license, annual and other regular expenses, bank
charges etc)
• Variable costs – raw materials, other direct costs like power, labour, packing, bought out
components, selling costs etc
• The formula to be;
Profits = Revenue generated - Fixed costs – Variable costs
Suppose quantities sold/produced are $, Revenue = Price of product x $
Variable costs = variable cost per piece X $, Fixed costs are independent of quantities
Break-even cost shall be = Fixed costs
Price per unit – variable cost per unit
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• The profit as a percentage of investment made
Payback Period
• The investment made by the companies are recovered over a period of time,
which becomes a deciding factor
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Reverse Bidding
• A reverse auction (also called procurement auction, e-auction, e-
sourcing or eRA) is a tool used in industrial business-to-business
procurement. It is a type of auction in which the role of the buyer
and seller are reversed, with the primary objective to drive purchase
prices downward
• In an ordinary auction (also known as a forward auction), buyers
compete to obtain a good or service. In a reverse auction, sellers
compete to obtain business.
Negotiations
• Matching of strengths – sit and negotiate – need based for both
the suppliers as well as buyers
• Weak supplier – defensive strategy
• Weak buyer – dictatorial strategy
Tendering
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