The document discusses pricing, which refers to the amount a good or service is sold for in the market. It provides a brief history of pricing, noting that historically prices were negotiated between buyers and sellers through bartering. Bartering involved exchanging goods or services without money. The introduction of currency gave people other methods to pay for goods and services. The document then outlines how companies set prices based on factors like costs, demand, profits, and competition. It discusses different pricing objectives like being profit-oriented, sales-oriented, or maintaining status-quo prices. Finally, it defines pricing strategy and various special pricing tactics companies can use.

1. UNDERSTANDING
PRICING

2. Amount at which a good/ser vice
will be sold in a market.
What is

3. PRICINGMethod used by a company
to set the price for a
product/ser vice.
What is

4. PRICINGThroughout most of histor y
prices were set by negotiation
between buyers and sellers.
A brief histor y of
This was done through
bar tering.

5. BARTERING
W hat is

6. BARTERINGThe exchange of goods/services
for other goods or services
without using money.
W hat is

7. Money/currency gave people
other methods to pay for
goods and services.

8. How Companies Set Their

9. Setting the
RIGHT
PRICEb a s e d o n v a r i o u s f a c t o r s
1. Establish pricing goals
2. Estimate demand, costs, and profits
3. Choose a price strategy
4. Fine tune with pricing tactics
5. Results lead to the right price

10. Pricing Objectives
1.Profit-oriented pricing objectives
2.Sales-oriented pricing objectives
3.Status-quo pricing objectives

11. Profit-oriented
Setting prices for your products that
will guarantee you'll make money on
each sale.
Pricing Objectives

12. Sales-oriented
Setting prices for your products that
will guarantee a specific level of
sales volume.
Pricing Objectives

13. Status-Quo
Setting prices for your products that
will maintain current price levels or
meet the price levels of the
competition.
.
Pricing Objectives

14. Pricing Strategy
A basic, long-term pricing framework,
which establishes the initial price for a
product and the intended direction for
price movements over the PLC.
W hat is a

15. SPECIAL
PRICING
TACTICS

16. Single Price
All goods offered at the same
price to all customers

17. Flexible Price
Price will vary for each customer

18. Lead Pricing
Selling the product at near
or below cost

19. Bait Pricing
False/misleading price used
to the lure customers to the
product.

20. Price Bundling
Combining two or more
items for a single price

21. Two Part Pricing
Two separate payments
required for one product.