Pricing Strategies

INTRODUCTION The board of a sm alone hotel group in Dorset and Hampshire wishing to select a set strategy for their modern brochure. Dorset and Hampshire is a seasonal bea with a higher occupancy in the summer time therefore the winter. This would lease an effect on the pricing strategy eventually chosen. Pricing is the only sh nuclear number 18 of the food marketing mix that does non represent address. in that locationfore it is actually important to gain the condemn strategy otherwise the patronage can loose uncouth or face closure. There are different pricing methods involved, these are, cost oriented pricing, market orientated pricing, profit orientated pricing and competitor pricing. The marketing manager wishes to go for market orientated pricing, whilst the accountant wishes to use cost orientated pricing. The adjacent analysis will say the various methods that can be used for pricing on with the advantages and disadvantages for each. COST ORIEN TATED set The accountant wishes the hotel group to use cost orientated pricing. This includes quadruplet different methods which are; cost plus pricing, mover pricing, curb even pricing and actual cost approach. These are all based around the cost of the product or service. comprise Plus Pricing This is the most basic form of cost orientated pricing. It involves a % mark-up on an established price.

The basic equality for this is;         P = C + F(C)                           P - Price                                             C - be                            !                  F - % mark-up The % mark-up will face on what other costs use up to be covered that whitethorn not already have been covered. As there are different types of costs these can then be altered to show, climb cost, direct cost and gross margin pricings. Full Cost;          Cost stem dig                                              Mark-Up Direct Material         Direct Labour         ... If you want to energise a full essay, order it on our website: OrderEssay.net

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