Skip to main content

Cost Based Pricing

Cost based pricing is determined by first figuring out how much it costs to make a product. Then, from there, a company can determine how much profit they want to see from each unit sold. A common cost based prices item is a cell phone or other new technology. Typically, there are a fair amount of people who are willing to pay high dollar to have the latest iPhone. Profit margins can quickly rise for products such as this. However, you have to do the adequate research to make sure that the price at which you sell your product is a price at which people will by the product. There are ways to reduce your cost which in turn can reduce the price you charge. We have seen this with Wal-Mart. They are always working to offer the lowest prices. Cost based pricing is an easy technique and is a good starting point used to set the floor price when determining your end price. 

Comments

Post a Comment

Popular posts from this blog

Vacant Buildings - What To Do With Them?

As we all know, there are vacant buildings and houses everywhere in the Birmingham metro area. Some of these have been condemned, deemed dangerous, are uninhabitable, etc.  Some, however, have just simply been abandoned. Frozen in time. What do we do with these buildings? Continue to let them become an overgrown eyesore? I think revitalization is a great solution. I understand that this is an expensive option, but it is possible and it is happening all over. Cities all across America are developing plans to re-grow and reinvent their city, Birmingham included.   In Huntsville, Stone Middle School was closed and put on the market in 2009.  A developer bought it in 2014 and turned it into Campus 805, an entertainment venue. Basically, they turned the classrooms into bars, restaurants, and recreational spaces. There is an arcade on the main level, axe throwing on the second level, and beer vats that stand tall in the gymnasium. They also have a large green space outs...
Post a Comment
Read more

Public Relations

Public relations is about building relationships with key people, managing a reputation, increasing sales, and gaining customers. Market is a component of PR that enhances your reputation, which leads to customers and increased sales. Credibility in a brand is partially dependent on the public relations of an organization. The key to credibility is the creation of new ideas and adapting to them.  Press releases and business stories are a way for customer and shoppers to connect with a business.  These methods of communication have a major influence on how people view the company. A History of Public Relations: True corporate PR began in the 18th century. The first PR department was established in 1889.  The first time PR was applied was in 1897 in order to manage communication between an organization and the public with regards to the railway.  The first public relations agency was founded in 1900. Ivy Lee, who created the first official press released to help th...
Post a Comment
Read more

Which Vendor Opportunity Is Right For My Business?

As we all know, there are many community events that are open to artists, food vendors, and businesses of all kinds.  It is important to choose the right event, one that will be the most beneficial to your business. As a food vendor, events centered around entertainment are usually easy money. Concerts, fairs, carnivals, craft shows, sporting events, things of this nature.  People are having a good time. Everyone always wants to eat good food that is convenient, right? As a consumer, I look forward to eating at new and different food trucks.  And, right now, food trucks are especially popular.  Events that are more professional or less casual probably don't offer spaces to food vendors, but if they did, I would imagine it would not be a worthwhile event.  With regard to the entertainment centered events, artists and makers would do better to devote their time to a different type of event.  People don't want to carry a $150 painting into a concert or fo...
Post a Comment
Read more