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40 Cards in this Set
- Front
- Back
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Mark Up
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a dollar amount added to the cost of products to get the selling price
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Mark Up Percent
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The percentage of selling price that is added to the cost to get the selling price
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Mark Up Chain
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The sequence of markups firms use at diff levels in a channel- determining the price structure in the whole channel
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Stockturn Rate
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The number of times the average inventory is sold during a year
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Avg. cost per unit
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The total cost divided by the related quantity
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Avg fixed cost per unit
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The total fixed cost divided by the realted quantity
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Avg. variable cost per unit
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The total variable cost divided by the related quantity
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Target Return Pricing
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Pricing to cover all costs and achieve a target return
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Long Run Target Return Pricing
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Pricing to cover all costs and over the long run achieve an average target return
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Break Even Analysis
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An approach to determine whether the firm will be able to break even- that is cover all its costs with a particular price
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Break Even Point
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The sales quantity where the firm's total cost will just equal its total revenue
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Fixed Cost Contribution Per Unit
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The selling price per unit minus the variable cost per unit
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Marginal Analysis
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Evaluating the change in total revenue and total cost from selling one more unit to find the most profitable price and quantity
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Marginal Revenue
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The change in total revenue that results from the sale of one more unit of a product
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Marginal Cost
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The change in total cost that results from producing one more unit
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Rule for maximizing profit
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The highest profit is earned at the price where marginal cost is just less than or equal to marginal revenue
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Marginal Profit
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Profit on the last unit sold
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Price Leader
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A seller who sets a price that all others in the industry follow
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Break Even Point
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The sales quantity where the firm's total cost will just equal its total revenue
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Value in use Pricing
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Setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used
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Reference Price
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The price a consumer expects to pay
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Fixed Cost Contribution Per Unit
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The selling price per unit minus the variable cost per unit
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Marginal Analysis
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Evaluating the change in total revenue and total cost from selling one more unit to find the most profitable price and quantity
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Marginal Revenue
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The change in total revenue that results from the sale of one more unit of a product
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Marginal Cost
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The change in total cost that results from producing one more unit
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Rule for maximizing profit
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The highest profit is earned at the price where marginal cost is just less than or equal to marginal revenue
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Marginal Profit
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Profit on the last unit sold
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Price Leader
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A seller who sets a price that all others in the industry follow
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Value in use Pricing
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Setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used
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Reference Price
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The price a consumer expects to pay
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Bait Pricing
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Setting some very low prices to attract the customers but tyring to up sell them ..trade up
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Psychological Pricing
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Setting prices that have special appeal to target customers
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Odd - even Pricing
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Setting prices that end in certain numbers
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Price lining
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Setting a few price levels for a product line and then marking all items at these prices
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Demand - backward pricing
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Setting an acceptable final consumer price and working backward to what a producer can charge
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Prestige Pricing
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Setting a rather high price to suggest high quality or value
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Full Line Pricing
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Setting Prices for a whole line of products
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Complementary Product Pricing
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Setting prices on several related products as a group
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Product Bundling Pricing
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Setting one proce for a set of products
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Bid Pricing
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Offering a specific price for each possible job rather than setting a price that applies for all customers
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