Pricing Made Easy

By Mitesh Maheshwari

Pricing Made Easy helps you understand what is pricing, current market pricing scenario, various pricing strategy, pricing problem & mistakes in today's business and pricing objective. This book teaches you how to Price your product focusing on two main strategies Markup & Markdown with real-time examples and different ways to calculate them. 

Markdown strategy helps you price your product during a seasonal sale or create a plan before going to the next selling season to keep all products moving through the store as quickly as possible. This strategy is most effective for stores whose customers visit frequently because the store needs to maintain an image of always having exciting new products available. One more reason to use this strategy is Poor performance of the product or reduction of the price because of a product's inability to sell at its original price.

Markup strategy helps you save lots of time by pricing products quickly. If you do not keep up with the prices of your competitors though, you can end up losing lots of money. This will happen if your prices are over or underpriced. In one case you will lose your customers and in the other, you will have lower profit margins. It also helps the vendor to easily calculate profit and Fair price of the product can be easily found. This strategy is mainly used by manufacturers and retailers to calculate their selling price.

This book helps you choose prices that maximize profits and shareholder value while considering consumer and market demand.

• Language: English
• Publisher: MINDPOP
• Release date: Nov 15, 2019
• ISBN: 9781393746249

Mitesh Maheshwari

Mitesh Maheshwari is a growing entrepreneur in the Apparel business. Born and brought up in Chennai, Mitesh is a graduate in Information Technology. However, during his growing days, Mitesh was always drawn towards the challenging and interesting world of business which led him to do his post-graduation in International Business Management. As one would normally agree, there’s no better teacher than experience, Mitesh has learned his tricks of the trade during his growth from a young lad to promising entrepreneur and has vast experience investing in Global market and Startups. 

Book preview

INTRODUCTION

From the first time I ever started understanding an organizational structure and different elements that make up a successful business, I wanted to write about the Pricing. Though so many writers have written so many books about the business world, my book focuses on how to understand the basic concept of pricing.

While so many business claims to have adopted the best pricing strategy, a few understand the real meaning of the terms and the actual problem faced when it comes to developing a real-time pricing strategy.

My book is for all those who want to understand the concept of pricing and implement it for the prosperity and betterment of their business.

I hope this book makes a positive difference it is intended to make and everyone prospers with God's glory and benevolence.

Thanks

PRICING

Definition

Pricing can be defined as the process by which a firm sets the selling price of its products.

It can also be defined as the process adopted by some business whereby it defines in quantitative terms the price at which its product, services or both would be sold to the customer.

Pricing is one of the four Ps which make the formula of marketing mix i.e. Price, Place, Product, and Promotion. Pricing is most important of all four Ps because it is the one that helps the business generate revenue while the rest of Ps are all cost centered.

The other three Ps (Place, Product, and Promotion), however, help indirectly in decreasing the price elasticity and in increasing the prices which in turn helps increase the profits and revenues.

While setting the prices, a business’s first strategy is to keep in mind the following elements: -

Elements of Pricing

Cost of goods

Manufacturing cost

Service Cost (Labor cost, employees' wages, etc.)

Placing cost,

Market condition

Competitors

Brand Popularity

Quality of product

Types of Pricing Processes

There are two types of pricing processes which are most popular among the businesses as follows: -

Automatic Pricing Process

Manual Pricing Process

Automatic Pricing Process

The automatic pricing process refers to the process whereby prices are applied to the sales and purchase of products and orders based on quantity break, vendor quotation, shipment date, invoice date, sales or promotion campaign, fixed amount, price prevailing on entry, automatically. The system connects so many factors and then sets up the pricing. Although, this system is complex, requiring constant maintenance and huge setup,