Pricing products and services
Pricing products and services is an important and difficult decision of any business entity. Pricing products and services is tough if you keep it high it decreases the sales and if it is too low it will also affect the business. Pricing products and services should be set at that level business will be in profitable from both ends.
Pricing is one of the most important aspects in generating revenues for your firm. Although there is no “The Best” way to price your products still there are a few methods that can help a firm to design and calculate the pricing for the
Pricing Products and Services: After studying this chapter you should be able to: Compute the profit maximizing price of a product and service using the price elasticity of demand and variable cost. Compute the selling price of a product using the absorption costing approach.
Time and Material Pricing in Service Companies: Learning Objective of the Article: Define and explain time and material pricing. Calculate and use billing rates used in time and materials pricing. Contents: Definition and explanation of time and material pricing. Time component Material component Example
Price Elasticity of Demand-Economists’ Approach to Pricing: Learning Objective of the Article: Define and explain the term “Price elasticity of demand”. Calculate profit maximizing price of a product of service using the price elasticity of demand and variable cost. If a company raises the