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WHAT’S IN A PRICE?

WHAT’S IN A PRICE?. Why did Apple select $579 as the retail selling price of the Apple iPad Air Retina tablet?. IMPLEMENTING AUTOMATED RETAIL: PRICE. PRICE. The cost of a good or service an exchange (typically a monetary exchange) in order to obtain something

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WHAT’S IN A PRICE?

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  1. WHAT’S IN A PRICE? Why did Apple select $579 as the retail selling price of the Apple iPad Air Retina tablet? IMPLEMENTING AUTOMATED RETAIL: PRICE

  2. PRICE The cost of a good or service • an exchange (typically a monetary exchange) in order to obtain something • The price of goods and services is established to fulfill a successful exchange process with the customer. • Customer perspective: price is what must be given up in order to get something that they want • Seller perspective: price is revenue that is gained for a product that leads to profit for the seller IMPLEMENTING AUTOMATED RETAIL: PRICE

  3. PRICING DECISIONS • Making good pricing decisions is critical to the success of the business. • If a product is priced too high or too low, it can create a loss for the business. • The term price is used interchangeably with the term cost—however, the two are very different. • Price is what a customer pays a seller—usually a retailer. • Cost is what the seller incurs (which may include cost of production) to obtain the product. IMPLEMENTING AUTOMATED RETAIL: PRICE

  4. PRICING DECISIONS • Internal Factors: are within the control of the business or can be altered by the business. • cost of goods, operating expenses, product mix • External Factors: occur outside of the business operation and cannot be controlled by the business. • supply and demand, government regulations, competition, natural and economic events IMPLEMENTING AUTOMATED RETAIL: PRICE

  5. PRICE TO MAKE A PROFIT • Retailers and School Based Enterprises need to have a clear understanding of all of their costs involved. • The business must understand additional costs to the retailer to sell the product through the automated retailing system. • Automated retailing kiosks have additional costs of doing business. • leasing fee • credit card processing fee • specialized packaging and labels IMPLEMENTING AUTOMATED RETAIL: PRICE

  6. FEES AFFECT PRICING • Leasing fees • Credit card processing fees • Specialized packaging and labels IMPLEMENTING AUTOMATED RETAIL: PRICE

  7. ACTIVITY Pricing Products for the Automated Retailing Kiosk and SBE IMPLEMENTING AUTOMATED RETAIL: PRICE

  8. IMPLEMENTING AUTOMATED RETAIL: PRICE

  9. ACTIVITY Pricing Spirit Factory Products for Automated Retailing IMPLEMENTING AUTOMATED RETAIL: PRICE

  10. QUIZ Pricing Products and Considerations for Automated Retailing IMPLEMENTING AUTOMATED RETAIL: PRICE

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