Price-the amount of money expected to be paid by consumer. usually the. higher the higher the price the better the quality.

The Barter System- A barter system is an old method of exchange. This system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return.

Product Value- The product value assessed by a business when setting a price for a particular product can depend on its production costs, its overall market value and the value of the product as perceived by a targeted group of consumers.

Forms of price-Pricing is one of the four elements of the marketing mix, along with product, place and promotion. Pricing strategy is important for companies who wish to achieve success by finding the price point where they can maximize sales and profits.

Importance of price- The price a business charges for its product or service is one of the most important business decisions management make.

6 steps for determining pricing- determine pricing objectives. what is your purpose

6 steps for determining pricing- study costs

how much money are you asking for?

6 steps for determining pricing- estimate demand

set price at level that the customers expect to pay

6 steps for determining pricing- study competition

what prices are your competitors charging?

6 steps for determining pricing- decide on a pricing strategy

will you price higher or lower than your competitor?

6 steps for determining pricing- set price

after evaluating the factors how much will you charge?

Return on Investment-Return on Investment is the ratio between the net profit and cost of investment resulting from an investment of some resource.

Return on Investment Examples- create your own example (1. What is ROI? and  2. How much should you charge the retailer? -

• Return on Investment is the ratio between the net profit and cost of investment resulting from an investment of some resource.

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Break-even point- is the point at which total cost and total revenue are equal.

1. **Demand elasticity - Inelastic and Elastic

elastic- If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic

inelastic- When the price elasticity of demand for a good is relatively inelastic the percentage change in quantity demanded is smaller than that in price.

1. Law of Diminishing Marginal Utility

• The law of economic utility is a law of economics stating that as a person increases consumption of a product while keeping consumption of other products constant, there is a decline in the marginal utility that person derives from consuming each additional unit of that product.

1. Price fixing

• the maintaining of prices at a certain level by agreement between competing sellers.

Price Discrimination

the action of selling the same product at different prices to different buyers, in order to maximize sales and profits.

1. Clayton Anti-Trust Act 1914

• The Clayton antitrust is an amendment passed by U.S. Congress in 1914 that provides further clarification and substance to the Sherman Anti trust act of 1890 on topics such as price discrimination, price fixing and unfair business practices.

1. Robinson-Patman Act of 1936

• The Robinson-Patman act or Anti-Price Discrimination Act, is a United States federal law that prohibits anti competitive practices by producers, specifically price discrimination.

1975 Consumer Goods Pricing Act

• An Act To amend the Sherman Antitrust Act to provide lower prices for consumers.... pricing act of SEC. 2. Section 1 of the Act entitled "An Act to protect trade and 1975.

1. *Government Regulations (Minimum Price Laws/Predatory Pricing, Unit Pricing, Price Advertising- Bait and switch

1. Competition-Oriented pricing -
2. Competitive pricing is setting the price of a product or service based on what the competition is charging. This pricing method is used more often by businesses selling similar products.