Pricing Strategies (Edexcel A-Level Business): Flashcards

Planned approach to setting prices to achieve business objectives

Price = unit cost + (mark-up × unit cost)

(Price - Unit cost) / Unit cost × 100

High initial price for new products, then gradually reducing

Initially low price for new products to gain rapid market entry

Illegal when deliberately selling below cost to eliminate rivals

Prices just below round figures (e.g., £99.99 not £100)

Between 0 and -1

Prices fluctuate based on demand, time, capacity & customer data

Regular monthly/annual fees for ongoing access to services