Price Adjustments

Price Adjustments - Price discrimination Charging different...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Price Adjustments Price Adjustments
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Discounts Discounts Quantity discounts – They’re cheaper  by the dozen. Seasonal – especially to wholesalers  and retailers Trade – Discounts built into the price  structure to provide appropriate prices  to distributors, i.e. wholesalers,  brokers and retailers 
Background image of page 2
Cash – Prompt payment from  wholesalers and cash or check from  the end customer.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Allowances Allowances Trade-in Promotional EDLP
Background image of page 4
Legal and regulatory  Legal and regulatory  concerns concerns Price fixing – They put you in jail for it.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Price discrimination Charging different prices to different customers in the same situation is theoretically illegal, but there are a lot of ways around it. Deceptive pricing The Federal Trade Commission will come and get you. See examples in the book. Predatory pricing Low prices to drive competitors out of business. Illegal, but Loss leaders Loss leaders Loss leaders are ok But not bait and switch...
View Full Document

This note was uploaded on 01/21/2011 for the course MSOM 303 taught by Professor Philpot during the Winter '10 term at George Mason.

Page1 / 6

Price Adjustments - Price discrimination Charging different...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online