Supersizing Pricing What does it mean? And how is it used? By: Jeff and Dustin

What is it?  This is a common pricing strategy where the consumer pays a little extra gets what seems to be a lot more.

How is it Used?  This is used to make consumers feel they are getting a much better deal by paying a little extra and they get a much bigger item  This was primarily used at fast food restaurants such as McDonald’s and Wendy’s.

Psychological Pricing

What is it? Psychological Pricing based on the theory that certain prices have a psychological impact. Retail prices are often expressed as "odd prices" Consumers tend to perceive “odd prices” as being significantly lower than they actually are prices such as $1.99 are associated with spending $1 rather than $2 The theory that drives this is that lower pricing such as this institutes greater demand than if consumers were perfectly rational

Why is it used? By pricing products strategically, a company may increase sales without significantly reducing prices. In some cases, a higher price is actually more likely to increase sales. Consider several factors in crafting a psychological pricing strategy to get the best results.

Loss Leader Pricing Jillian and Shelby

What is it? Loss leader pricing is a pricing strategy in which a store sells selected goods below cost in order to attract customers who will, make up for the losses on highlighted products with additional purchases of profitable goods.

Why is it used? attract new customers

Examples Grocery stores Unwanted merchandise

Cody Wickwire and Griffin Gleeson

  The process used by retailers of separating goods into cost categories in order to create various quality levels in the minds of consumers. What is Price Lining

  This technique is used to help consumers decide what is in their price range. This provides a high profit for a low investment. Why Use This?

  For example, a shoe store might have shoes for $9.99, $19.99 and $29.99 in 3 different areas. So that they can go to the area of the store that has shoes in their price range.  Dollar Stores: all merchandise is$1 or less. Examples

Volume Discount Pricing Elena and Angela

Google Definition A financial incentive for individuals or businesses that purchase goods in multiple units or in large quantities. The seller rewards those buying in bulk by providing a reduced price for each good or group of goods. This allows businesses to purchase additional inventory.

Formula Discounted price= unit price*n^f

VDP Theory Volume discount pricing theory states that a firm can generate more net income by selling more items at a lower price than it can selling less items at a higher price.

Every day low prices

What is low pricing  It is a pricing strategy promising consumers low prices without the need to wait for a sale price offer event to come around in stores.  It saves stores the effort and expense needed to mark down prices in the store during sale events and can also be used to generate shopper loyalty in the store

What is low pricing used for? -saves retail stores expense needed to mark down prices in the store -used to sell a possible failing product -used to try and gain costumer loyalty in the store

Every Day Low Prices Jacob Arsenault Thanks Wikipedia

EDLP: What is it? Focuses on keeping prices low Focuses on keeping prices low Kept updated daily Kept updated daily Not the same as a sale Not the same as a sale

EDLP: Why is it used? Establishes & maintains consumer loyalty Establishes & maintains consumer loyalty No need to mark-down during sales No need to mark-down during sales Sell more items faster Sell more items faster

Examples Walmart keeps their prices low. Walmart keeps their prices low. Nofrills makes sure their prices are low. Nofrills makes sure their prices are low. Food Lion keeps their prices low Food Lion keeps their prices low All of these stores have adapted EDLP All of these stores have adapted EDLP

NEGOTIATED PRICING By: Stephanie and Taylor

WHAT IS IT? Negotiated Pricing: A type of secondary market exchange in which the prices of each security are bargained out between buyers and sellers

WAYS TO NEGOTIATE LOWER PRICES 1.Do your homework 2.Make the Other Side Name a Price First 3.Don’t Be Reasonable 4.Know the Limit 5.Be Quiet 6.Ask for Extras 7.Walk Away

STAGES OF NEGOTIATION 1.Preparation 2.Discussion 3.Clarification of goals 4.Negotiate towards a Win-Win outcome 5.Agreement 6.Implementation of a course of action

Negotiated Pricing Tyler St John Worth

What is Negotiated Pricing? Negotiated Pricing allows you to set an item price based off of a fixed dollar amount, a percentage from the cost or from a market price. consists of a Buyer & a seller Both parties must agree upon price

Why Is it used? To make a trade/deal more even To determine a price that's acceptable for both parties Cons ●More work to do ●More complex

Examples Retailers Flea Market During sales of a home Buying or selling a dirt bike