Reference no: EM133074716
The chapter references Michael Marn and Robert Rosiello and their Harvard Business Review "Managing Price, Gaining Profit".
Research merchant card services and learn all of the various fees that providers will charge based on the type of credit that accepted. Provide an overview of each merchant and fee. Warning: Many of the websites are for specific merchant card providers and you may find yourself with lots of follow up sales calls and emails! To avoid this you can look for the answers in magazine or college articles about the subject.
What are the pros and cons of the following pricing strategies-value pricing, keystoning, cost-plus, penetration strategy, skimming strategy, and meet or beat the competition-for each of your businesses.
1. What costs and benefits are there to offering trade credit? How can a small firm ensure that it controls the costs?
2. What is the relationship between price and company image? Why is it important?
3. Define cost-plus pricing. Why is it used so frequently? What are the drawbacks associated with using it?
4. What is "penetration" pricing? Can you think of an example of a company that has used penetration pricing to introduce a new product? What firm is it and what is the example?
5. What is the relationship between pricing and competition?
6. How can a pocket price waterfall assist a business?