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Pricing is the process whereby a business sets and displays the price at which it will sell its products and services and may be part of the business's marketing plan.In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of the product.
List price, also known as the manufacturer's suggested retail price ('MSRP'), or the recommended retail price ('RRP'), or the suggested retail price ('SRP') of a product is the price at which its manufacturer notionally recommends that a retailer sell the product.
Price refers to the amount a customer pays for a product. Price may also be a consumer's expectation for getting a certain product (e.g. time or effort). Price is the only variable that has implications for revenue. Price is the only part of the marketing mix that talks about the value for the firm.
The price of a product has different functions: for the producer, the most important one is to produce revenues [1] and to cover the costs of production, distribution and sale of a product. [2] Price also signals quality and reflects existing supply and demand.
This 1916 advertisement distinguishes the list price and a lower our special price. The list price, also known as the manufacturer's suggested retail price (MSRP), or the recommended retail price (RRP), or the suggested retail price (SRP) of a product is the price at which its manufacturer notionally recommends that a retailer sell the product.
Sellers competing for price-sensitive consumers, will fix their product price to be odd. A good example of this can be noticed in most supermarkets where instead of pricing milk at £5, it would be written as £4.99. Contrarily, sellers competing for consumers with low price sensitivity, will fix their product price to be even.
The regulating price of a given type of product is a sort of modal average price level, above or below which people would be much less likely to trade the product. If the price is too high, buyers cannot afford to buy it, or try to get cheaper alternatives. If the price is too low, sellers cannot cover their costs and make a profit.
A product's average price is the result of dividing the product's total sales revenue by the total units sold. When one product is sold in variants, such as bottle sizes, managers must define "comparable" units. Average prices can be calculated by weighting different unit selling prices by the percentage of unit sales (mix) for each product ...