ADM 2320 Chapter Notes - Chapter 11: Price Skimming, Price Ceiling, Geographical Pricing
21 Apr 2016
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Establishing a price floor and a price ceiling for an entire line of similar products and then setting price points between to show distinct differences in quality. When pricing more than one product for a single and lower price. Building store traffic by aggressively pricing a regularly bought product just above its store cost. An additional reduction offered as an incentive for retailers to merchandise in advance of normal buying season. Additional reduction to reduce invoice cost if buyer pays prior to end of discount period. Additional reductions offered in return for services or any specific behaviours (aka more shelf space, more advertising, etc. ) Providing a reduced price for the amount purchased (greater value) The shipper charges one rate no matter where buyer is located vs. different prices are charged depending on location of delivery. Loss leader pricing takes leader pricing further by lowering the price below store cost. (to build traffic, ex bogo deal)
