Pricing and Cost Behavior
This module will focus on pricing and cost behavior. Pricing is one of the most important aspects of the organization since there ate a variety of factors to consider. This is when it helps to understand the numbers in terms of expenses and the potential for what customers are likely to pay for the products or services. This module will focus on the three major factors that affect pricing decisions. In order to set the prices, companies will carefully analyze their input costs and the prices of their products. This is an art as much as a science because if the prices are too high, the customers will go to the competitors. On the flip side, if the prices are too low, the company will not have enough money to cover the expenses and will have no profit margin left after the expenses.
This module will also examine how costs behave. This is where the historical financials of the company are important. An organization often looks into the past to analyze performance and determine the best decisions going forward for the organization. There are often trends in pricing, so taking the time to review the historical data can help the organization gain valuable information for the future.
- Pricing Strategies
This video discusses the different pricing strategies that organizations can use depending on the abilities of the organization and the costs of the products/services.
- Businesses Getting Results: Pricing Strategies for Small Businesses
The right pricing structure helps a business generate sales and gain loyal customers. The wrong one can keep you from being profitable. A rational way of determining your product's price is crucial to credibility and profitability.
Discussion:
"A customer-profitability profile highlights those customers a company should drop to improve profitability." Do you agree? Explain. Are all customers important? What other options does the organization have instead of "dropping" the customer?
Note: You have to reply to attached discussion how it is if you find anything wrong you'll mention it.
Attachment:- Discussions.rar