4 Ps Cheat sheet

4 Ps Cheat sheet - Price will be determined by your cost...

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Price will be determined by your cost structure. The lower, the more successful. Lowest prices may attract but may be bad when starting a new business. The key is not to be cheaper, but different than you comp. Variables include Allowances and deals, Distribution and retailer mark-ups and Discount structure. The price is the amount a customer pays for a product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. Price answers the questions What is the value of the product or service to the buyer? Are there established price points for products or services in this area? Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin? What discounts should be offered to trade customers, or to other specific segments of your market? How will your price compare with your competitors? The price to be charged for products and services should be determined in the light of the niche prospect's likely cost-benefit ratio and the financial ability to pay according to the payment terms. Given the typical niche prospect, this may suggest the need for extended payment terms, lease arrangements or alternatively may indicate a possibility for asking for initial
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4 Ps Cheat sheet - Price will be determined by your cost...

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