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go directly to buyer

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sales outside of purchasing time

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the way manufactures quote prices to wholesaler/retailers

Exp. manufactuer granting wholesaler% discount and retailers % discount from list price

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offered to buyers of large amounts

Exp. cumulative & non clumliative

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encourage buyers to pay bills quickly

Exp. 2% discount if payed in ten days

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store/company using rebates or coupons to get customers to buy their product over the competitions Exp. Menards has lots of rebates

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items reduced in price for short period based on events

Exp. back-to-school sales

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low cost to draw in customers

Exp. Sumner Theater

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low prices set on a consistent basis with no intention of raising them or offering discounts in the future Exp. Walmart

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Suggests a bargain to help increase sales volume Exp. 4 cases of pop for $12

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sets higher-than-average prices to suggest status and high quality to the customer Exp. Rolls Royce cars; Rolex watches

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Exp. $2.99 instead of $3.00 - odd means “cheap”; Even means “high quality”

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Highs and lows in sale activity

Exp. More long distance calls during business hours

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pricing according to where a product is sold and location

Exp. Broadway tickets in New York are more expensive then for on the road somewhere else

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Diff prices for diff styles

Exp. Red washer may cost more then white

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recgonizing buyer's sensitivity to price

Exp. senior citizen/ student discounts

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seller offering reductions from the usual price

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sales promotions where in prices are reduced for a short period of time

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help create an illusion for customers

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two or more different prices for a product, through no difference in cost
Exp. following below

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Setting prices taking in consideration costs, consumers, competition, laws, reglation, economic conditions, & exchange rates

Exp. Tariffs, economic conditions, exchange rates, shipping

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price adjustments required because of different shipping agreements

Exp. FOB (Free On Board ) – customer pays shipping

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company offers several complimentary products in a package that is sold at a single price & is cheaper then priced individually

Exp. Computer company includes software

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Getting rid of excess materials (priced low) Exp. Wood Chips

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Product is priced low, but extras are priced high

Exp. Dogs-need to pay for food

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Prices for accessories or options sold with main product

Exp. Cars

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sets a limited number of prices for specific groups or lines of merchandise

Exp.$25 for sandals, $45 for casual, $75 for running

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adjusting prices to maximize the profitability for group of products rather than for just one item

Exp. One product priced low, one priced high

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Calculate costs of making a product and expenses of doing business

Exp.Add projected profit margin to arrive at price

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NO relation between cost/demand and price Exp.Determines price for a product based on bids

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Attempt to determine what consumers are willing to pay for specific goods/service Exp.Relies on premises of supply-and-demand theory and demand for elasticity