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प्रश्न
State any two advantages of cost-plus pricing strategy.
Mention two advantages of cost-plus pricing strategy.
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उत्तर
Two advantages of cost-plus pricing strategy are:
- Simplicity: Implementing cost-plus pricing is a simple process. It entails adding a markup to the production cost in order to determine the selling price. This simplicity allows businesses to easily and consistently calculate prices, particularly for products with stable production costs.
- Profit Stability: Cost-plus pricing is a method that guarantees businesses maintain a specific profit margin on every sale. By implementing a strategic pricing strategy, companies can enhance their financial stability, even in times of market volatility or fluctuating production costs. This approach allows businesses to cover overhead expenses and generate profits, ensuring long-term sustainability.
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संबंधित प्रश्न
Which pricing strategy involves charging according to their competitors?
It is also known as ‘going rate pricing’ or competition based pricing.
______ price refers to the high initial price charged when a new product is introduced in the market.
Under this Pricing Strategy, a business firm adjusts its own price policy in accordance with general pricing structure in the industry.
______ determines the sales volume and the profit margins.
Give one difference between skimming pricing and penetrating pricing.
What is skimming pricing?
What is Cost plus pricing policy?
| Evergreen Cosmetics is planning to launch a new range of ‘anti-wrinkle creams’ in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion, they could easily be successful in the market. |
- Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.
- Describe any two qualities that a salesman selling this product should possess.
- Explain any two tools of sales promotion that can be used here.
"Penetrating pricing leads to setting a high initial price". Comment
