Accounting MRK108 Chapter 19.4: Part 4 MRK108 Chapter 19
27 Dec 2016
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Single-price tactic offering all goods and services at the same price (or perhaps 2 or 3 prices) Removes price comparisons from the (cid:271)uyer"s de(cid:272)isio(cid:374) (cid:373)aki(cid:374)g pro(cid:272)ess. Flexible pricing (variable pricing) different customers pay different prices for essentially the same merchandise bought in equal quantities. Often found in the sale of shopping goods, specialty merchandise, and most industrial goods except supply items. Disadvantages: the lack of consistent profit margins, potential ill will of high-paying purchasers, tendency for salespeople to automatically lower the price to make a sale, and the possibility of a price war among sellers. Used by people with lengthy experience, training, and certification by licensing board (lawyers, physicians) Sometimes charge customers at an hourly rate, sometimes fees based on the solution of a problem or performance of an act (ex: eye examination) Price lining offering a product line with several items at specific price points. Buyer may be offered a wider variety of merchandise at each established price.
