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Discount pricing
◦ ________________pricing – a pricing ________________ that offers customers
________________ from the regular price; some reductions are basic ________________off discounts and others are ________________discounts
________________and Revising Prices
 Break-Even ________________– The level of sales at which ________________equal total
costs - (Fixed Costs) / (unit selling price – variable costs) = Number of units needed to breakeven
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◦ ________________ price – the actual or projected price per unit
________________ -the amount added to the cost of an ________________ to cover
________________and ensure a profit (cost + markup = price; price – markup = cost; price –
cost = markup)
________________ – the amount of money taken off an original price (price * markdown
________________= $ markdown; price – markdown = sales price)
________________ – a pricing technique that offers ________________reductions from the
regular price; some reductions are basic ________________off discounts and others are
specialized discounts (price * discount percentage = discount dollars; price –
________________ dollars = discounted price)
Possible ________________to pricing strategy
◦ Adjusting prices to ________________profit – profit or loss is determined by the
________________ between your________________price and your costs. Before doing
either 2 ________________to ask:
▪ Are your products' pries ________________or inelastic?
▪ What are your ________________ price?
◦ Reacting to ________________ prices – you must keep your eye on
________________market prices for your products
◦ Revising________________of sale – you can change your credit ________________or
introduce trade, quantity, or cash discounts
________________limit – the maximum amount a ________________ may allow a customer
to change without getting special authorization
________________ of demand – The degree to which demand for a good or
________________varies with its price.
________________ceiling – The maximum price a seller is ________________to charge for a
product or service.