Document Summary

Understand what prices market will bear, how competitors will react & what target market is willing to pay. Tight grasp on product costs to make accurate profit forecasts. Competitively price to cover costs, profits, retailer requirements & consumer expectations. Many hidden costs to bringing products into canada from the us (exchange rate, brokerage fees, gst taxes, fuel surcharge, freight/transportation costs & duties) Retailers do not readily accept price increases mid-year. Major uncontrollable variables: volatile exchange rate, uncertain world financial markets, unpredictable gas prices. Consider what consumers & retailers are likely to pay, costs from supplier & hidden costs. Tuition, rent, interest premium, fee, dues, fare, price. Price: money/other considerations exchanged for ownership or use of a product. Amount paid is usually different from list price (quoted price: discounts, allowances & rebates lower price, special fees & surcharges raise price. Buyers are more willing to pay extra fees than a higher list price.