PRICING I. Pricing is very difficult. II. Some of it is science but a lot is ART. III. Fundamental for successful pricing a. Develop your own strategy as an organization. The 80 20 rule applies – 80% of the companies follow what 20% of the market does. i. Assumptions – collect data for pricing. Never know how people will react to your price until you bring it to the market place. 1. Lower the price higher the demand, higher price lower demand. 2. The consumer determines price. And can have an inverse relation a. People buy cars because they are expensive inverse correlation
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This note was uploaded on 09/08/2010 for the course BUS 130 at San Jose State.