List Price

Examples of List Price in the following topics:

• Settling the List Price

  • A list price must be close to the maximum price that customers are prepared to pay and yield the maximum profit for the retailer.
  • Other factors that should be considered when setting a list price include fixed order amounts, quantity breaks, promotion or sales campaigns, non-price costs (travel time to the store, wait time in the store, disagreeable elements), specific vendor quotes, the price prevailing on entry, shipment or invoice dates and the combination of multiple orders or lines.
  • The manufacturer's suggested retail price (MSRP), list price or recommended retail price (RRP) of a product is the price which the manufacturer recommends to the retailer.
  • Retailers must ask questions to set a list price.
  • A good pricing strategy is one that strikes a balance between the price floor (the price below which the organization ends up in losses) and the price ceiling (the price beyond which the organization experiences a no demand situation).

• Geographic Pricing

  • Geographical pricing is the practice of modifying a basic list price based on the location of the buyer to reflect shipping costs.
  • Geographical pricing is the practice of modifying a basic list price based on the geographical location of the buyer.
  • Uniform delivery pricing (also called postage stamp pricing): The same price is charged to all.
  • Zone pricing: Prices increase as shipping distances increase.
  • Zone pricing is also used to price fares in certain metro stations.

• Discounting

  • Discounts and allowances are reductions to a basic price of goods or services.
  • There are many different types of price reduction, each designed to accomplish a specific purpose.
  • They can occur anywhere in the distribution channel, modifying either the manufacturer's list price (determined by the manufacturer and often printed on the package), the retail price (set by the retailer and often attached to the product with a sticker), or the list price (which is quoted to a potential buyer, usually in written form).
  • Seasonal discounts are price reductions given for out-of-season merchandise.
  • Analyze the use and types of discounts as part of pricing tactics

• Price Fixing

  • Price fixing is a collusion between competitors in order to raise prices of a good or service, at the expense of competitive pricing.
  • The defining characteristic of price fixing is any agreement regarding price, whether expressed or implied.
  • They might agree to sell at a common target price, set a common minimum price, buy the product from a supplier at a specified maximum price, adhere to a price book or list price, engage in cooperative price advertising, standardize financial credit terms offered to purchasers, use uniform trade-in allowances, limit discounts, discontinue a free service or fix the price of one component of an overall service, adhere uniformly to previously announced prices and terms of sale, establish uniform costs and markups, impose mandatory surcharges, purposefully reduce output or sales in order to charge higher prices, or purposefully share or pool markets, territories, or customers.
  • These are all instances of price fixing.
  • This includes exchanging prices with either the intent to fix prices or if the exchange affects the prices individual competitors set.

• Trade Allowances

  • Trade allowances are price reductions given to middlemen, such as retailers, to encourage them to stock an organization's products.
  • A manufacture sells to a retailer at a certain price unit point and beyond that point you give them a discount because they are buying in bulk.
  • They can get shampoos and other hair products at a cheaper rate and sell them to consumers at full prices.
  • A seller supplying both trade or resellers and the general public will have a general list price for anybody, and will offer a trade discount to bona fide trade customers.
  • They can get shampoos and other hair products at a cheaper rate and sell them to consumers at full prices.

• Psychological Pricing

  • Inferring quality from price is a common example of the psychological aspect of price.
  • Another manifestation of the psychological aspects of pricing is the use of odd prices.
  • We call prices that end in such digits as 5, 7, 8, and 9 "odd prices. " Examples of odd prices include: $2.95, $15.98, or $299.99 .
  • Psychological pricing is one cause of price points.
  • When items are listed in a way that is segregated into price bands (such as an online real estate search), the price ending is used to keep an item in a lower band, to be seen by more potential purchasers.

• Terms Used to Describe Price

  • We've been using the word "price" a lot.
  • The price of an item is also called the price point, especially where it refers to stores that set a limited number of price points.
  • Price is relatively less than the cost price.
  • Service providers may present you with a fee list as opposed to a price tag if you ask for the price of their services.
  • The price to ride a bus is expressed by the term "fare

• Illegal Price Advertising

  • These are fees that are not stated in the advertised price.
  • Often, companies that supposedly are liquidating will raise prices on items marked for clearance, meaning that the company increases the price and "discounts" it.
  • Another case, at liquidating stores (if it is a retail chain), the sales prices at the chain's other stores is lower than the liquidator's prices at the closing stores.
  • However, advertisers frequently fail to list in what way the items are being compared (price, size, quality, etc.) and, in the case of "better," to what they are comparing.
  • This is common with price-comparing Internet websites.

• Creating a Marketing Mix

  • On the other hand, "price" is placed in the denominator since the higher the price the lower the perceived value.
  • Price: What should be the appropriate price for this product that allows it to compete with other products in the same segment or substitute products?
  • This isn't an easy task, for sure, but following the three steps listed below wil get a business off to an excellent start.
  • The customer profile you create will help you make product, pricing, promotion, and placement decisions.
  • If you have to educate your customers about the use and benefits of a product, you're going to spend more than if you're offering a new product in a well-established commodity category that simply sells at a lower price than its competitors.

• Making Appropriate Changes to Product, Placement, Promotion, and Pricing

  • Today, the marketing mix--product, placement, promotion and pricing--must take into account both online and offline buyers; traditional media, and digital media.
  • Nevertheless, marketers must take into account the following shifts, which will inevitably effect their product, promotional and pricing strategies:
  • Both small and major brands offer e-commerce websites that allow web users to browse products and share their 'wish lists' or purchases with friends across social media websites.
  • Pricing--the primary means by which customer judge the attractiveness of a product or service--can also be affected due to wider access to customers via online channels.
  • Amazon also allows companies to advertise their products by paying a fee to be listed as featured products.