SBM Pricing

Setting prices for products and services requires entrepreneurs to balance a multitude of complex forces as entrepreneurs determine prices for their goods and services that will draw customers and ________.

• position prices lower than all competitors

• produce a profit

• effectively compete with online alternatives

• have high volume/high margin sales

________ frequently convey the idea of quality, prestige, and uniqueness to customers.

• Effective packaging

• Low prices

• High prices

• High profile promotions

A key ingredient to setting prices properly is to understand a company's ________.

• cost structure

• most aggressive price competitor

• target market

• profit expectations

A pricing technique that sets prices that always end in numbers like "99" for prices such as $9.99 and $19.99 is an example of ________ pricing.

• odd

• price

• customized

• zone

________ pricing is a technique that involves marking down the normal price of a popular item in an attempt to attract more customers who make incidental purchases of other items at regular prices.

• Leader

• Markup

• Markdown

• Multiple unit

Explain the FOUR (4) kinds of credit a small business can offer its customers.