June 27th 2008
The worldwide terrible high inflation, figuring Pricing up or down? (9-20)
9. Strategic divisionalising of the policy
Your pricing policies are first and foremost intended to result in a profit for your company. There are several instances where an adjustment in price can achieve a particular objective, such as:
- the maintenance of present activity levels;
- to dispose of slow moving stock;
- to introduce a new product to the market;
- to deter the competition;
- to increase the sales of other products by the use of loss leaders.
You should always proceed with utmost caution and remember that the main objective is to achieve a profit for each and every item you sell. Continue Reading »
