1. Lesson 1- Pricing

2. Lesson 1 – Pricing Objectives: Name factors that affect pricing.
Identify pricing objectives and methods.
Describe customer perception regarding price.

3. Price Price- The value place on a product Factors that affect price:
Cost of making the product
Cost of running the business
Price competitors charge
Demand for the product

4. Pricing Objectives
One objective of pricing is to make a profit, but there are other objectives to consider...
Maximize profits
Increase market share
Match the competition

5. Competition-oriented
Pricing Methods
Businesses generally apply a combination of three basic pricing methods:
Cost-oriented
Demand-oriented
Competition-oriented

6. Customer Perception
It’s hard to know for sure if you’ve found the right price until you consider how the customer perceives it.
Ask students to think about a time when price affected their purchase.

7. Customer Perception Digital camera $2,000 Dinner for two at a cafe $50
Concert t-shirt
$28
How do students perceive the prices on this slide? Too high? Too low? Just right?
Have the students explain why they made the choice that they did.

8. Lesson 1 – Pricing Summary: Name factors that affect pricing.
Identify pricing objectives and methods.
Describe customer perception regarding price.