INTRODUCTION “The moment you make a mistake in pricing, you 're eating into your reputation or your profits.” - Katharine Paine The above quote from the founder of KDPaine & Partners LLC and The Delahaye Group is quite apt. Pricing is quite often ignored by executives & leads to people not understanding how it can change the competitive game in an industry. Most executives believe pricing to be a zero-sum game, i.e. price increase shall lower volume of sales thus in turn hurting the margin gain, but the other way round need not necessarily be true. This problem arises owing to the setting of prices based on cost-plus basis rather than a customer value point of view basis.
vi. KEK can also increase profitability by increasing the price or commission rates and fees from SME services whiles all other elements remain unaltered. On the other hand, a reduction in the price or fee levels can lead to higher sales volumes, thereby increasing market share or market penetration for the SMEs. We recommend that marketing and finance work closely together to make pricing decisions. Marketing also needs to consider the pricing strategies of its competitors in order to be more effective and profitable.
It may be difficult for company to make money at first, because most consumers are afraid to try out new products. Therefore, company has to make their new product attractive at the early introduction stage, for example introducing and advertising. Sales might be slow at first, but profit will slowly increase from negative to positive. Once there’s more people are familiar with the product, sales and profit will increase rapidly. There will also be new competitions in the market, so company are forced to do promotions so that people won’t change to buy other brands.
Suppose the rate of Rs. 425 per kg fat (which can neither be purchased nor it is the selling rate for ghee normally) is translated into Rs. 190 per kg fat and Rs. 158 per kg SNF, then the purchase price for buffalo milk and cow milk is determined as shown below: Purchase price for buffalo milk and cow milk Calculated in grams per L of milk × price per grams of component. In this way, the cow milk is paid to the extent of 78% of the rate for buffalo milk.
Marketing stimulation which is linked to marketing mix (Price, Place, Product, and Promotion). In previous research, it is confirmed that marketing mix have significant impact to purchasing decision (Andotra & Pooja, 2007). 2. Other stimulation for example, economics, technology, law and political, cultural etc. al so influencing decision making Whereas personal factors, generally known as the Buyer’s Black Box (Kotler,1995).
Within this process it is important that the company hire people are well trained who are qualified for the job rather than getting the job; this will facilitates the delivery of quality services. (The Marketing Mix, 2015) explained “internal” competitive advantage a business can have over other competitors which can inherently affect a business’s position in the marketplace. In addition market segmentation is important as well; it basically narrows down the type of consumers that the company wants to attract to the brand. This can range from age groups, social status, geographic location etc. Grace Kennedy intends to carry out segmentation more effectively by subdividing the segments into smaller units so that the resources will be enough to effectively penetrate the right target groups.
The company will need to make additional trade-offs. Do you purchase a lower quality yarn, accept a lower profit, or raise your prices? If orders increase, you will need to spend more time crocheting, so deliveries may slide. Businesses are never static, so it is important to keep reevaluating your decisions to be sure your company is on
Consumers tend to be more reluctant when purchasing goods so products end up being sold and not bought; this also affects customer satisfaction levels (Kotler, 2000). These methods will eventually lead to a dependency on sales to achieve the organization’s objectives regarding profit and growth. Overall the customer’s needs are not satisfied and therefore could in turn affect the business negatively by word of mouth and product dissatisfaction (Bhasin ,2016). The only positive outcome of the selling concept is a quick turnover of profit, which is in itself yet a short term
As a case, if milk costs $3 per gallon, or 2.34 cents for each ounce, and a beverage contains 9 ounces of milk, the milk expense will be 21.1 cents. On the off chance that the beverage contains one twofold shot of coffee and a $7.50 pound of beans makes 32 twofold shots, the espresso expense is 23.4 cents. This is an aggregate sustenance expense of 66.6 cents. Containers, tops and sleeves include extra cost and in the event that they indicate 20 cents, the aggregate expense of the beverage would be 86.6 cents.