BUS 200 Lecture Notes - Lecture 11: Liquor Distribution Branch, Image Editing, Break Even

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 200
• Professor: Janette Pashen

Document Summary

The amount of money charged for a product or service. The total value that customers exchange for the benefits of having or using the product or service. Customers do not buy products, they buy value. Pricing decisions can have important implications for profit. 1 cent change in coke can cause 300 million dollars in profit. Cost-based pricing: setting prices based on production, distribution, and selling costs. Ex; bc liquor distribution branch (bcldb) buys wine from a bc okanagan vineyard. Bcldb cost is /bottle and it sells the wine to liquor stores for . 20. Markup in dollars: unit price - unit cost = ,20. Markup in % = (markup) / sales price = 40% Markup pricing cont : manufacturer: cost of goods , wholesaler: price to wholesaler . 50, retailer: price to retailer: 6, consumer: price to retailer: 12. Looks at the relationship between costs, revenue, output levels and profit.