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For Profit At Cost Below Cost Free

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Presentation on theme: "For Profit At Cost Below Cost Free"— Presentation transcript:

1 For Profit At Cost Below Cost Free
Business Purposes For Profit At Cost Below Cost Free

2 For Profit Organisations
Business Purposes For Profit Organisations A business or other organization whose primary goal is making money (a profit). Most companies considered to be businesses are for profit organisations This includes anything from retail stores to restaurants to insurance companies to real estate companies.

3 Sold at cost Business Purposes
A price placed on a product or service that is the same as the seller paid to create or buy it. A company might engage in this sort of pricing in order to increase market share at the expense of profitability. They might also use this tactic to off load stock that won’t sale at a profit Another example is a local drama society who charges a small ticket price to cover their overheads. They can do this as the people involved usually work for free. A commercial theatre group couldn’t do this as they need to pay wages.

4 Below cost Business Purposes
A price placed on a product or service that is less than the seller paid to create it. A company might engage in this sort of pricing in order to increase market share at the expense of profitability. Another example is NHS prescription drugs. The charge per item to the consumer is £7.20 but the cost to the NHS who supplies the consumer can be much more. The NHS is subsidising the consumer.

5 Free Business Purposes
Free goods or services are provided when they are considered to be essential to everyone This includes health care, the bin collection, road maintenance and social services provided by your local council; and emergency services such as the police, ambulance and fire services. Voluntary organisations such as Oxfam and Save the Children provide medical assistance and essential supplies free of charge.


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