Transfer pricing (Ch.20)
... In general, the higher the ad valorem tariffs relative to the income tax differential, the more likely it is that a low transfer price is desirable. Costs (legal fess, executive times and penalties). If the transfer price is too high: tax authorities in B see revenues foregone. If the transfer price ...
... In general, the higher the ad valorem tariffs relative to the income tax differential, the more likely it is that a low transfer price is desirable. Costs (legal fess, executive times and penalties). If the transfer price is too high: tax authorities in B see revenues foregone. If the transfer price ...
04/15 - David Youngberg
... a. What is the most expensive liquid commercially available (as in, no liquid gold)? (It costs about $7,400 a gallon.) b. Why does it cost so much? c. Tying—when the seller charges one price for a good that can only be used with another good charged at a lower price i. Crucially, the seller must be ...
... a. What is the most expensive liquid commercially available (as in, no liquid gold)? (It costs about $7,400 a gallon.) b. Why does it cost so much? c. Tying—when the seller charges one price for a good that can only be used with another good charged at a lower price i. Crucially, the seller must be ...
(04/28/2016) Unilateral Effects in Horizontal Mergers
... some diverted customers that would have been lost if prices were increased pre-merger are now recaptured. • Now, if the firm increased the price of its product: – the gain from customers that would continue to buy doesn’t change, but – the loss from customers that switch is lower. ...
... some diverted customers that would have been lost if prices were increased pre-merger are now recaptured. • Now, if the firm increased the price of its product: – the gain from customers that would continue to buy doesn’t change, but – the loss from customers that switch is lower. ...
Pricing new products
... To take an accurate measure of the benefits a product offers—and thereby find its true price ceiling— market research must be designed to elicit more open-ended feedback than can usually be acquired through multiple-choice questionnaires or trade-off techniques, both of which can limit responses. Fo ...
... To take an accurate measure of the benefits a product offers—and thereby find its true price ceiling— market research must be designed to elicit more open-ended feedback than can usually be acquired through multiple-choice questionnaires or trade-off techniques, both of which can limit responses. Fo ...
Monopolistic Competition and the Determination of
... a key neoclassical assumption—inherited from the classical that average costs at some point invariably will shift from decreasing to increasing costs, at a point that determines the market price. In the mid-1920s, a young Italian economist, Piero Sraffa, pointed out that this was however not so give ...
... a key neoclassical assumption—inherited from the classical that average costs at some point invariably will shift from decreasing to increasing costs, at a point that determines the market price. In the mid-1920s, a young Italian economist, Piero Sraffa, pointed out that this was however not so give ...
Ch6Sec3
... Choice and Efficiency One benefit of a market-based economy is the diversity of goods and services that consumers can buy. Prices help consumers choose among similar products. Prices provide an easy way for you to narrow your choices to a certain price range. Prices also allow producers to target t ...
... Choice and Efficiency One benefit of a market-based economy is the diversity of goods and services that consumers can buy. Prices help consumers choose among similar products. Prices provide an easy way for you to narrow your choices to a certain price range. Prices also allow producers to target t ...
Pricing New Products
... based on a product's benefits, may ultimately prove to be unrealistic: there may not be a sufficient market at that level, it may leave too much room for competitors, or customers may be strong enough to demand a greater share of the value the product creates.2 But establishing this ceiling will ens ...
... based on a product's benefits, may ultimately prove to be unrealistic: there may not be a sufficient market at that level, it may leave too much room for competitors, or customers may be strong enough to demand a greater share of the value the product creates.2 But establishing this ceiling will ens ...
Document - Oman College of Management & Technology
... to skim the profit from the market. It may generate low volume of sales. • Skimming strategy is suitable for products that have short life cycles or which will face competition at some point in the future (e.g. after a patent runs out) • Examples include: Play-station, jewellery, digital technology, ...
... to skim the profit from the market. It may generate low volume of sales. • Skimming strategy is suitable for products that have short life cycles or which will face competition at some point in the future (e.g. after a patent runs out) • Examples include: Play-station, jewellery, digital technology, ...
Smart Pricing Strategies
... Now there is a slight gain in total gross margin. Remember that having the “lowest price in the market” image can’t get you higher prices for higher quality products. Having a “value” image is to reach an optimal combination of quality, service, information and price. Price competition in a market s ...
... Now there is a slight gain in total gross margin. Remember that having the “lowest price in the market” image can’t get you higher prices for higher quality products. Having a “value” image is to reach an optimal combination of quality, service, information and price. Price competition in a market s ...
Pricing Products
... is the amount of money you pay to get a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service . {includes ( effort , time , perceived risk worry )} ( Comprehensive definition ) Value = total benefits – total c ...
... is the amount of money you pay to get a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service . {includes ( effort , time , perceived risk worry )} ( Comprehensive definition ) Value = total benefits – total c ...
Market Structures Regulation and Deregulation Ch. 7
... 1. Understand how firms use market power. 2. List three market practices that the government regulates or bans to protect competition. 3. Define deregulation, and list its effects on several industries. ------------------------------------------------------------------------------------------------- ...
... 1. Understand how firms use market power. 2. List three market practices that the government regulates or bans to protect competition. 3. Define deregulation, and list its effects on several industries. ------------------------------------------------------------------------------------------------- ...
Unit 8 Advertising and Marketing Lista reči 2 (str. 41) Marketing
... sales forecast – predviđanja u prodaji a statement of what the amount or value of a company's sales is likely to be in the future, based on information available now about the market, past sales, etc.: provide/issue a sales forecast Executives issued a disappointing sales forecast. cut/reduce/slash ...
... sales forecast – predviđanja u prodaji a statement of what the amount or value of a company's sales is likely to be in the future, based on information available now about the market, past sales, etc.: provide/issue a sales forecast Executives issued a disappointing sales forecast. cut/reduce/slash ...
Modern Marketing Practices
... A good, service, or idea designed to fill a consumer need or want Product Differentiation: Creation of a feature or image that makes products ...
... A good, service, or idea designed to fill a consumer need or want Product Differentiation: Creation of a feature or image that makes products ...
Chapter 7
... product from its selling price. Sometimes referred to as the contribution margin. Gross Profit = Selling Price – Variable Costs Variable Costs – costs that can go up or down depending on the amount of product made or services provided. (e.g., cost of raw materials or packaging) Fixed Costs – som ...
... product from its selling price. Sometimes referred to as the contribution margin. Gross Profit = Selling Price – Variable Costs Variable Costs – costs that can go up or down depending on the amount of product made or services provided. (e.g., cost of raw materials or packaging) Fixed Costs – som ...
Price Setting and Ethical Marketing Learning Objectives Written
... same markups for all their items because it is simpler, but this is not usually the best approach. It is more effective to consider customer demand, competition, and how markups relate to turnover and profit. It is important for marketing managers to understand costs. If customers are not willing to ...
... same markups for all their items because it is simpler, but this is not usually the best approach. It is more effective to consider customer demand, competition, and how markups relate to turnover and profit. It is important for marketing managers to understand costs. If customers are not willing to ...
LECT180
... may say that we do not offer a better product than the competition, and the customer decision will be determinate for other elements which may in a way be subjective ( such as the containers, the colors, etc. ) and if we have a higher price, we would need to justify it with an additional something l ...
... may say that we do not offer a better product than the competition, and the customer decision will be determinate for other elements which may in a way be subjective ( such as the containers, the colors, etc. ) and if we have a higher price, we would need to justify it with an additional something l ...
Service parts pricing
Service Parts Pricing refers to the aspect of Service Lifecycle Management that deals with setting prices for service parts in the after-sales market. Like other streams of Pricing, Service Parts Pricing is a scientific pursuit aimed at aligning service part prices internally to be logical and consistent, and at the same time aligning them externally with the market. This is done with the overarching aim of extracting the maximum possible price from service parts and thus maximize the profit margins. Pricing analysts have to be cognizant of possible repercussions of pricing their parts too high or too low in the after-sales market; they constantly have to strive to get the prices just right towards achieving maximum margins and maximum possible volumes.The after-sales market consists of service part and after-sales service. These areas often account for a low share in total sales, but for a relatively high share in total profits. It is important to understand that the after-sales supply chain is very different from the manufacturing supply chain, and hence rules that apply to pricing manufacturing parts do not hold good for pricing service parts. Service Parts Pricing requires a different outlook and approach.Service networks deal with a considerably higher number of SKUs and a heterogeneous product portfolio, are more complex, have a sporadic nature of demand AND have minimal response times and strict SLAs. Companies have traditionally been content with outsourcing the after-sales side of their business and have encouraged third-party parts and service providers in the market. The result has been a bevy of these operators in the market with strict price competition and low margins.Increasingly, however, companies are realizing the importance of the after-sales market and its impact on customer retention and loyalty. Increasingly, also, companies have realized that they can extract higher profit margins from the after-sales services market due to the intangible nature of services. Companies are investing in their after-sales service networks to deliver high levels of customer service and in return command higher prices for their parts and services. Customers are being sold the concept of total cost of ownership (TCO) and are being made to realize that buying from OEMs comes packaged with better distribution channels, shorter response times, better knowledge on products, and ultimately higher product uptime.The challenge for companies is to provide reliable service levels in an environment of uncertainty. Unlike factories, businesses can’t produce services in advance of demand. They can manufacture them only when an unpredictable event, such as a product failure, triggers a need. The challenge for Service Parts Pricing is to put a value to this customer need. Parts that are critical, for example, can command higher prices. So can parts that only the OEM provides in the market. Parts that are readily available in the market cannot, and must not, be priced to high. Another problem with after-sales market is that demand cannot be stimulated with price discounts, customers do not stock up service parts just because they are on discount. On the up-side, the fact that most service parts are inelastic means pricing analysts can raise prices without the adverse effects that manufacturing or retail networks witness.These and other characteristics of the after-sales market give Service Parts Pricing a life of its own. Companies are realizing that they can use the lever of service part pricing to increase profitability and don't have to take prices as market determined. Understanding customer needs and expectations, along with the company's internal strengths and weaknesses, goes a long way in designing an effective service part pricing strategy.