Beautiful Masks" is a start-up manufacturing designer masks for men and women set up in April' 20 post COVID. It is managed by Ms Meher. She is facing a huge demand for her designer masks from Retail outlets and on their Online store as well. She wants to understand the correct approach for pricing the masks. She has appointed you as the management accountant. Please advise her regarding the key factors affecting pricing decisions, both internal and external. Also, suggest any 3 types of pricing methods she can choose from highlighting 2 salient features of each method.
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
Beautiful Masks" is a start-up manufacturing designer masks for men and women set up in April' 20 post COVID.
It is managed by Ms Meher. She is facing a huge demand for her designer masks from Retail outlets and on their Online store as well. She wants to understand the correct approach for pricing the masks. She has appointed you as the management accountant.
Please advise her regarding the key factors affecting pricing decisions, both internal and external.
Also, suggest any 3 types of pricing methods she can choose from highlighting 2 salient features of each method.
Step by step
Solved in 2 steps
