How companies set the prices established in the workplace and what strategies do they use?
Please let me know four strategies that can be used to establish these rates.
Prices are generally determined on the basis of the following variables: First, the cost of producing the product, including operating costs and variable or fixed (salaries, insurance, utilities, rent, etc.), with desired profit margin. Second Instead, "commodity" products such as feathers and downs, and the elements high turnover such as DVDs get by with a slim margin, low volume More personalized items such as luxury cars have a margin much higher. An important factor is advertising. Captain Crunch is relatively high compared to generic versions of cereals to cover their enormous advertising budget. Thirdly, the price is determined by what competitors charge for similar products. If Dell can sell a laptop PC $ 700, HP, Toshiba and the rest of its competitors must be at the same price to stay competitive. Finally, the price is determined by perceptions Consumer product desired. A shirt Ralph Lauren does not really cost much more to produce than a similar shirt gap, but suppose consumers pay more to obtain a great event and / or more exclusive product.