Week 4 Pricing - Therefore not only is the company gaining a sale by offering a discount but they gain a multiple item sale by advertising the

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Everyone has given such great information on the types of pricing strategies so far. I can see how the “99” may make things seem cheaper, my mom for one always rounds down. If an item is priced 12.99 she will say it is 12.00, so it must be very successful with some people. In my case I usually get more out of 49 than 99. I think a tremendous strategy is the trend I have seen all over lately; companies are advertising 10 for $10 products. Most consumers assume they have to buy ten of the item in order to get the sale price.
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Unformatted text preview: Therefore not only is the company gaining a sale by offering a discount, but they gain a multiple item sale by advertising the price in that manner. My dad works in sales and they strategically plan the products that they advertise in this manner in order to maximize earning potential. The items that cost the company the least to sell are the ones they offer at this price. This way not only are they making more for each individual item sold, but their profits increase vastly for those consumers who purchase all 10 items....
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This note was uploaded on 03/26/2012 for the course BUS GM560 taught by Professor Fields during the Summer '10 term at Keller Graduate School of Management.

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