1. Develop A Foundational Knowledge Of Pricing To Understand Its Role In Marketing

2.  Attracts The Customer’s Attention  Enforces The Idea Of “Value” For The Money  Takes Into Account:  Cost To Produce  What Competitors Are Charging  What Customers Are Willing To Pay

3.  The Good or Service itself  Any additional services or warranties  The Benefit or Value to the customer

4.  Pricing affects the quantity the customers will purchase. Will the company sell enough product to make a profit at that price?  Decisions On Whether To Expand A Product Line Or Close It Are Related To What Price Can Be Charged.

5. Shipping Products Long Distances Can Significantly Increase The Price Of An Item Knowing What Customers Are Willing To Pay, what Competitors Are Charging, And Then Determining the Cost To Produce And Ship The Item Have To Be Considered When Setting Prices.

6. When Setting Prices And Promotion Plans The Company Must Consider: – Is The Company Trying To Break Into An Existing Market? (then the price needs to be lower than the competition) – Is It Trying To Expand Into New Markets? (if the company is the first one to introduce the product to the market, the pricing can be high) – What Is The Competition Doing? (competitive intelligence)

7.  Pricing Objectives Are The Goals A Company Hopes To Achieve Through Its Pricing Decisions o Profit maximization (make as much profit as possible) o Increase market share (take share away from the competition) o Maintain market share (stay competitive)

8.  Price Fixing : Collaborating With Other Companies (Competitors) To Set Prices For A Company’s Products  Predatory Pricing : The Practice Of Selling A Product Or Service At A Very Low Price, Intending To Drive Competitors Out Of The Market  Price Discrimination: Charging different prices to similar customers in similar situations to create unfair competition

9.  Bait-and-switch Advertising: Customers are "Baited" by advertising for a product or service at a low price and that advertised product is not available. The sales person tries to switch the customer to a more expensive product. (the company never intended to sell the advertised product) (this is not a rain-check situation where a company is simply out of a product)  Dumping: foreign producers offer their products to domestic consumers at lower prices than the domestic producers can afford to sell at (below market pricing)

10.  Deceptive Pricing: The use of False or Misleading Statements in advertising (Examples Of Deceptive Pricing Are Savings Claims, Price Comparisons, "Special" Sales, "Two-for-one" Sales, "Factory" Prices, Or "Wholesale" Prices that aren’t true)  Resale Price Maintenance: manufacturers try to force retailers to sell their products at certain (usually high) prices and punish the retailer by withholding merchandise or discounts if the retailer doesn’t comply

11.  Unethical example:  Making Pricing So Complex That Customers Don’t Understand How It Works. (The Company Might Be Taking Financial Advantage Of Customers)

12. Customers Know That They Aren’t Being Taken Advantage Of Pricing Is Competitive

13. Prices Become Less Likely To Be Modified (Even Down) Because The Law Might See The Change In A Negative Manner.

14.  Loss-Leader Pricing: legal pricing tactic that offers popular products at or below cost to bring customers to that retailer in hopes of selling additional items at a profit. (many states have adopted minimum price laws to prevent retailers from selling certain goods below costs to avoid predatory pricing practices)  Flexible Pricing: every customer negotiates their own price (car dealerships mostly use flexible pricing)  One Price Pricing: every item in that retail store is at the same price (Dollar Store)

15. Technology allows data to be easily collected, collated and analyzed. Pricing decisions can be effectively reviewed with accurate and timely information to determine the best time to adjust prices and by how much the prices need to change. Pricing can also be inputted into the computer cash register system reducing the number of pricing errors at the cash register. Examples of technology in pricing are barcodes, scanners, UPC’s and merchandise tags. Technology makes it much easier to change prices

16.  The Price At Which A Product Is ACTUALLY Sold To The Customer

17. – Retail Price Is The Initial Amount That The Company Would Like To Charge For An Item (suggested retail price) – Selling Price Is The Actual Price For Which It Is Sold To The Customer (sale price)

18. – The Selling Price Must Bring Enough Profit To The Seller So The Company Can Stay In Business

19. – Competitors’ Prices – What Customers are Willing To Pay (demand) – What The Item Costs to Produce, Transport, and Sell – External factors such as current economic conditions

20. – Regulations and Laws Can Affect What Companies Will Charge. – Tariffs And Additional Taxes (Think Gasoline) Can Significantly Change Prices The Price Of Gas In NC vs. SC

21. – If Competition Raises Its Prices, A Company Might Be Able To Make More Profit By Raising Prices – The Opposite Is True For Lowering Prices

22. – How Much Competition Does Your Business Have In The Area Or Online? – Are You Selling Big Ticket Or Inexpensive Items? – Are Your Products Seasonal? – Are You The Industry Leader Or A Follower? – How are you Positioning your product? – What is your brand image?