Jumat, 16 Oktober 2009

Price Definition

the definition of price is based on four way (era legacy)

market-based pricing
based on supply and demand law. if demand is lower than supply then price is drop down
otherwise if supply is fixed then demand is up the price is get up.
cost-based pricing
simple way to explain this is, cost production plus profit the result is the price
competitor-based pricing
company can do observation competitor before make a price. they analyzing the market price. they can get lower or higher price.it can be effect in one type product
value-based pricing

based on value of product in the eyes of customers. this method is used when the product is new, inovative and have a competitive advantage

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