BUS 201 Lecture Notes - Lecture 9: Barcode, Fixed Cost, Reverse Auction
17 Nov 2014
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Bus 201: introduction to business - lecture 9: ch. Lo-1 determining prices: pricing to meet business objectives, pricing decisions are influenced by the need to compete in the market place, by social and ethical concerns, and even by corporate image, profit-maximizing objectives. Set the selling price to sell the number of units that will generate the highest possible total units. Too low - it will probably sell many units, but may miss out on additional profits on each unit ( and may even lose money on each exchange) Too high make a large profit but sell less. To use resources efficiently, many firms set prices to cover costs and achieve a targeted level of return for owners: market-share (market penetration) objectives. Companies may initially set low prices for new products to establish market share to get buyers to try products. Cost-oriented pricing: selling price = seller"s costs + profit, ex.
