The price must be sufficient to cover __________________ that sustains the company and moves it forward
total cost plus a margin of profit
Pricing at less than total cost can be used as a special
short-term strategy to do what
increase demand
Sometimes, business owners offer loss leaders, merchandise
they intentionally sell below the direct product cost with the
expectation that customers will do what
will buy more as they learn of other
products and services the business has available
Markups may be expressed as a percentage of either the selling
price or the cost
A technique that sets lower than normal prices to hasten
market acceptance of a product or service or to increase market share
penetration pricing strategy
A small business in competition with larger
firms is seldom in a position to consider itself the what
price leader
The major reason for granting credit is to
make sales
Examples of bank credit cards
MasterCard and Visa
Firms selling to other businesses may specify
terms of sale
Example of trade credit
2/10, net 30, which means that the seller is offering a 2
percent discount if the buyer pays within 10 days of the invoice date, and failure to take this discount makes the full amount of the invoice due in 30 days
Pertinent credit data can be obtained from several sources, including
credit bureaus
Privately owned organizations that summarize different firms' credit experiences with individual consumers
credit bureaus