Other Issues When Setting Price

As we have seen in this tutorial, as well as in the Pricing Decisions tutorial, marketers must consider many factors when making a pricing decision. We conclude our discussion of pricing by suggesting several other issues that can impact how price is set. These include:

  • Ownership Options
  • Early Payment Incentives
  • Currency Considerations
  • Auction Pricing

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Samples of Marketing Tutorials

Cost Pricing: Cost-Plus Method
In the same way markup pricing arrives at price by adding a certain percentage to the product’s cost, cost-plus pricing also adds to the cost by using a fixed monetary amount rather than percentage. For instance, a contractor hired to renovate a homeowner’s bathroom will estimate the cost of doing the job by adding their total labor cost…

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