Section 4
Inputs to Pricing Decisions
Book
Version 3
By Boundless
By Boundless
Boundless Marketing
Marketing
by Boundless
5 concepts
Marginal Analysis
Pricing decisions tend to heavily involve analysis regarding marginal contributions to revenues and costs.
Fixed Costs
Fixed costs are business expenses that are not dependent on the level of goods or services produced by the business.
Break-Even Analysis
The break-even point is the point at which costs and revenues are equal.
Organizational Objectives
For the vast majority of business entities, the ultimate objective should be to increase profits, often through a better pricing strategy.
Other Inputs to Pricing Decisions
Factors to consider in pricing include Economic Value added to Customers (EVC), competitor's pricing, and government regulations.