resale price method

Resale Price Method

The Resale Price Method is a pricing policy used in business which allows a company to set the price of products based on the selling price of other products which have already been sold. This type of policy is especially useful for companies selling products for which there is no established market price, or for companies who wish to remain competitive in pricing yet still maintain a level of profit. The Resale Price Method is a useful tool for setting prices for products being offered for sale, especially in industries where competition is high, as it allows a company to make decisions based on sound market research.

When using the Resale Price Method, a company takes into account the prices of similar products that have already been sold by other businesses. These prices are used as a comparison to determine how much the company should charge for their own products. The factors taken into consideration when using the Resale Price Method could include the location of the sale, the amount of competition in the market, and other factors that could affect the pricing of the product. An advantage of using the Resale Price Method is that it allows the company to remain competitive in a market that is subject to fluctuating prices.

An example of a company using the Resale Price Method is a clothing store. By looking at the prices of similar items of clothing sold by other stores in the area, the store can set its own prices for their items. By taking into account the prices of the other items, the store can make sure that their prices remain competitive yet still remain profitable. This allows the store to achieve their desired profit margin and remain competitive in the market.

The Resale Price Method is also useful for companies selling online. By researching the prices of similar products already being sold online, the company can better evaluate the pricing of its own items. The Resale Price Method helps to keep the company competitive in an ever-changing market.

For companies in the reseller business, the Resale Price Method can be a valuable tool. A reseller must know the expected price of products they wish to resell in order to be successful. By using the Resale Price Method, a reseller can ensure they are pricing products in a way that makes them competitive yet profitable.

In conclusion, the Resale Price Method is a useful tool for companies wishing to remain competitive in a market where prices fluctuate. By researching the prices of similar products already being sold in their industry, a company can set prices for their own products that are competitive yet still offers them a good level of profit. This makes the Resale Price Method a popular pricing policy used by many companies.

The cost plus pricing method, also known as mark-up pricing method, is an approach used to determine the final price of a product. This method is commonly used by merchants and manufacturers who need to sell their products at reasonable and profitable prices. The basic premise for this pricing strategy is to take into account the costs of production and add an additional amount (mark-up) to it to determine the selling price.

Cost plus pricing has a number of advantages over other pricing models such as market based pricing, psychological pricing and product line pricing. Firstly, the cost plus pricing method is simple and it ensures that the manufacturer covers the cost of production plus a desired profit margin. This approach aslo helps the manufacturer to quickly respon to changing market conditions as the price can easily be adjusted by adjusting either the cost or the markup rate. Additionally, since the product price is determined after evaluating the production cost, quality of the product can also be improved since manufacturers would not have to compromise on cost to lower the selling price under this pricing method.

Finally, another advantage of this pricing method is that the customers are more likely to accept the product prices as compared to pricing determined by other methods. This is because customers can easily make a judgement about the fair price of the product by understanding the costs of production added to a reasonable profit margin.``