Entrepreneurship Chapter 11

The amount of added to the cost of an item to cover expenses and ensure a profit

Finding out what competitors are charging and deciding price off of that

ROI stands for

Calculating costs to make or buy your product to determine profit

The amount of money taken from the original price

Lower prices offered for a limited period of time to stimulate sales

Involves charging a high price to recover costs and maximize profit as quickly as possible

The point at which the gain from an economic activity equals the costs incurred in pursuing it

Items in a certain category are priced the same

Costs and expenses are subject to change depending on the number of units sold

The sales price is $100, the markdown percentage is 35%. What is the markdown dollars

Fixed costs/(unit selling price-variable costs)=

Finding out what customers are willing to pay for your product

Which is a factor that affects price

If you invest $20,000 in assets and want a 20% return on investment, what's the expected profit

Builds sales by charging a low initial price to keep unit costs to customers as low as possible

An illegal practice which competing companies agree to restrict prices within a specified range

Several complementary products are sold at a single price

Costs and expenses are not subject to change depending on the number of units sold

pricing of goods on basis of cost/unit measure, pound/ounce, in addition to the price per item

Higher-Than-Average prices are used to suggest status and prestige to the customer

Odd numbers are employed to suggest bargains

Offers customers reductions from the regular price

Items are priced in multiples

Method of selling, customers told a bargain item is out of stock/inferior to higher price item

The actual or projected price per unit

Pricing above the market when no alternative retailer is available

What is the product life cycle

A business's portion of total sales

Belief that customers' perceptions of a product are strongly influenced by price