| A | B |
|---|
| price skimming | charging a high price to recover costs |
| penetration pricing | building sales by charging a low initial price |
| psychological pricing | based on the belief that customers base opinions of products on price |
| prestige pricing | higher than average prices |
| odd/even pricing | 19.99 or 20.00 |
| price lining | low priced, mid-priced, top-of -the line price |
| promotional | low pricing for a limited time |
| discount pricing | reductions on prices to customers |
| break-even point | =Fixed Expenses/Sales price-Variable Expenses |
| markup | amount added to cost to cover expenses and make a profit |
| markdown | a percentage off of the original price |
| Fixed Expenses | Expenses that generally remain the same from month to month |
| Variable Expenses | Expenses that change from month to month |
| Return on Investment | what % of an investment you can expect to collect in a year |
| Cost-based pricing | price is based on expenses and desired profit |
| Demand-based pricing | price is based on what customers are willing to pay |
| Competition-based pricing | price based on what your competitors charge |
| One-price Policy | all customers pay the same price |
| seasonal discount | price is based on the season |
| Quantitiy Discount | a discount based on the quantity purchased |
