Pricing Homework Help
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A price is the monetary charge taken by an entity for the provided service or goods. It goes by various names in the world such as rate, fee, charge, interest, fare etc. A lot of calculation is performed before setting the price of anything. The cost involved in its manufacturing, advertising, transportation etc. are the few factors that are taken into account. Obviously the profit percentage is included too. Sometimes the variation in price is also observed if the demand supply pattern is not seen to go easy. By varying the prices, the quality of the product is also altered and the value for its quality becomes dependent. In our pricing homework help article we will discuss about the features, meaning, definitions and various salient factors responsible for pricing.
Features of pricing
The following features can be included in any price set up by the company for their profit. They are
a. The prices invested by the firm for the product from the marketing aspects like methods of distribution, currency used into it etc.
b. Pricing also carry many merits for the customers like warranty and guarantee, free delivery and installations of products, free service in limited period etc.
c. Pricing also contributes to various prices of goods for various consumers or various prices for the same consumers at distinct times.
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Factors affecting pricing of a product
In our pricing homework help we deal with many factors and explain their importance in measuring a price for a product. They are as follows
1. Product characteristics: In this the reliability of the product along with its demand is observed from the market and later on the pricing is adjusted. More is the demand, less the price can be done.
2. Product cost: The cost involved in making the product. Many optimization techniques can be utilized to lessen such costs and incur more profits. In order to achieve equitable returns, many cost studies like fixed, variable and incremental cost are observed.
3. Objectives of the firm: Skimming objectives of a firm will result in high prices of the product. On the other hand if the goal is market penetration, then the prices are supposed to be a little affordable.
4. Competitive situation: Favored by the market, competition also affects the price of a product. If the competition is usually high, the best quality is tried to be provided by the company at the optimized cost available. But in case of low market competition a little surge charge is acceptable by the consumers.
5. Consumer’s behavior: the consumer’s behavior is usually noted over its scale. if the marketing manager is dealing the product in an industrial level or wholesale market, the prices will be different from the same being done with the retail market or general consumer.
Steps involved in pricing a product
It is a tough job, and from our pricing homework help team suggestions, it also requires tedious case studies and market studies. The following steps are to be followed in order to achieve a reasonable pricng for the product.
1. Assessment of the value that the customer places over a product. Many market research techniques can make this easy
2. Classification of customer base. The product is for common use or specific use should be researched finely.
3. Identification of a pricing structure is necessary. Our pricing homework help team experts have years of professional experience in this step and know it inside out.
4. A competitor’s reaction over the strategies of a firm is also needed.
5. Monitoring the assorted prices to the product once it has been sent in market. These researches record the consumer’s response.
6. Analysis of the worthiness of returns achieved by the investments. If it is not sufficient or desired, necessary actions to be taken.
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