Supersizing
Pricing
What does it mean? And
how is it used?
By: Jeff and Dustin
What is it?
This
is a common pricing
strategy where the
consumer pays a little extra
gets what seems to be a lot
more.
How is it Used?
 This
is used to make consumers feel they
are getting a much better deal by paying
a little extra and they get a much bigger
item
 This was primarily used at fast food
restaurants such as McDonald’s and
Wendy’s.
Psychological Pricing
What is it?
Psychological Pricing based on the theory that certain prices have a psychological impact.
Retail prices are often expressed as "odd prices"
Consumers tend to perceive “odd prices” as being significantly lower than they actually are
prices such as $1.99 are associated with spending $1 rather than $2
The theory that drives this is that lower pricing such as this institutes greater demand than if consumers were perfectly rational
Why is it used?
By pricing products strategically, a company may increase sales without significantly reducing prices.
In some cases, a higher price is actually more likely to increase sales.
Consider several factors in crafting a psychological pricing strategy to get the best results.
Loss Leader Pricing
Jillian and Shelby
What is it?
• Loss leader pricing is a pricing strategy in which a store sells
selected goods below cost in order to attract customers who
will, make up for the losses on highlighted products with
additional purchases of profitable goods.
Why is it used?
• attract new customers
Examples
• Grocery stores
• Unwanted merchandise
Cody Wickwire and Griffin Gleeson
What is Price Lining

 The process used by retailers of separating goods
into cost categories in order to create various quality
levels in the minds of consumers.
Why Use This?

 This technique is used to help consumers decide
what is in their price range. This provides a high
profit for a low investment.
Examples

 For example, a shoe store might have shoes for $9.99,
$19.99 and $29.99 in 3 different areas. So that they
can go to the area of the store that has shoes in their
price range.
 Dollar Stores: all merchandise is$1 or less.
Volume Discount Pricing
Elena and Angela
Google Definition
• A financial incentive for individuals or
businesses that purchase goods in multiple
units or in large quantities. The seller rewards
those buying in bulk by providing a reduced
price for each good or group of goods. This
allows businesses to purchase additional
inventory.
Formula
Discounted price= unit price*n^f
VDP Theory
• Volume discount pricing theory states that a
firm can generate more net income by selling
more items at a lower price than it can selling
less items at a higher price.
Every day low
prices
What is low pricing
 It
is a pricing strategy promising
consumers low prices without the need to
wait for a sale price offer event to come
around in stores.
 It saves stores the effort and expense
needed to mark down prices in the store
during sale events and can also be used
to generate shopper loyalty in the store
What is low pricing used for?
-saves retail stores expense needed to mark
down prices in the store
-used to sell a possible failing product
-used to try and gain costumer loyalty in the
store
Every Day Low Prices
Jacob Arsenault
Thanks Wikipedia
EDLP: What is it?
• Focuses on keeping prices low
• Kept updated daily
• Not the same as a sale
EDLP: Why is it used?
• Establishes & maintains consumer loyalty
• No need to mark-down during sales
• Sell more items faster
Examples
• Walmart keeps their prices low.
• Nofrills makes sure their prices are low.
• Food Lion keeps their prices low
• All of these stores have adapted EDLP
NEGOTIATED PRICING
By: Stephanie and Taylor
WHAT IS IT?
Negotiated Pricing: A type of secondary market exchange in which
the prices of each security are bargained out between buyers and
sellers
WAYS TO NEGOTIATE
LOWER PRICES
1. Do your homework
2. Make the Other Side Name a Price First
3. Don’t Be Reasonable
4. Know the Limit
5. Be Quiet
6. Ask for Extras
7. Walk Away
STAGES OF NEGOTIATION
1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiate towards a Win-Win outcome
5. Agreement
6. Implementation of a course of action
Negotiated Pricing
Tyler St John Worth
What is Negotiated Pricing?
Negotiated Pricing allows you to set an item price based off of a fixed dollar
amount, a percentage from the cost or from a market price.
consists of a Buyer & a seller
Both parties must agree upon price
Why Is it used?
To make a trade/deal more even
To determine a price that's acceptable for both parties
Cons
● More work to do
● More complex
Examples
Retailers
Flea Market
During sales of a home
Buying or selling a dirt bike