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Cost Approaches to Cost Approaches to Pricing Pricing Chapter 8 Chapter 8
54

Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Dec 16, 2015

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Page 1: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Cost Approaches to PricingCost Approaches to Pricing

Chapter 8Chapter 8

Page 2: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Pricing QuestionsPricing Questions

Which Costs Are Relevant in the Pricing Decision?

What Is the Common Weakness of Informal Pricing Methods?

What Are Common Cost Methods of Pricing Rooms?

Page 3: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Pricing QuestionsPricing Questions

What Are Common Methods of Pricing Food and Beverages?

How May Profitability and Popularity Be Considered in Setting Food Prices?

Page 4: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Pricing QuestionsPricing Questions

Will Departmental Revenue Maximization Result in Revenue Maximization for the Hospitality Firm?

Page 5: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Pricing QuestionsPricing Questions

What Is Integrated Pricing? What Is Price Elasticity of Demand?

Page 6: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Price Elasticity of DemandPrice Elasticity of Demand

Measures How Sensitive Demand Is to Changes in Price

Either Elastic or Inelastic

Page 7: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Price Elasticity of DemandPrice Elasticity of Demand

Computed by Dividing % Change in Quantity Demanded by Base Quantity BY % Change in Price by Base Price

(Q2 - Q1) / Q1 (P2 - P1) / P1

Page 8: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Price Elasticity of DemandPrice Elasticity of Demand

Assume Hotel Sells 1,000 rooms @ $30Assume Hotel Sells 1,000 rooms @ $30 Changes Price to $33 and sells 950Changes Price to $33 and sells 950

(950 - 1,000)/1,000(950 - 1,000)/1,000

(33 - 30)/30(33 - 30)/30

= - 0.05 / 0.10 = -0.50 Inelastic= - 0.05 / 0.10 = -0.50 Inelastic

Page 9: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Price Elasticity of DemandPrice Elasticity of Demand

If Less Than 1 - Inelastic (Demand Is Insensitive to Price Changes)– An increase in price is offset by a smaller decrease

in demand– Normally results in more profits with a price

increase– An decrease in price is offset by a smaller increase

in demand– Normally results in less profits with a price

decrease

Page 10: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Price Elasticity of DemandPrice Elasticity of Demand

If Greater Than 1 - Elastic (Demand Is If Greater Than 1 - Elastic (Demand Is Sensitive to Price Changes)Sensitive to Price Changes)– An increase in price is offset with a higher An increase in price is offset with a higher

decrease in demanddecrease in demand– Normally results in less profits with a price Normally results in less profits with a price

increaseincrease– An An decreasedecrease in price is offset with a higher in price is offset with a higher

increase in demandincrease in demand– Normally results in more profits with a price Normally results in more profits with a price

decreasedecrease (up to a point) (up to a point)

Page 11: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Price Elasticity of DemandPrice Elasticity of Demand

Competition, Uniqueness Affect Elasticity

When Change Prices, Test for Elasticity

Page 12: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Informal Pricing MethodsInformal Pricing Methods

Competitive Intuitive Psychological Trial and Error Follow The Leader

Page 13: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Informal Pricing MethodsInformal Pricing MethodsFour Modifying FactorsFour Modifying Factors

Consider First: Historical Price Changes Guest Perceptions (Price/value) Competition Modify by Rounding

Page 14: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Mark Up ApproachesMark Up Approaches

Ingredient Mark Up Determine Ingredient Costs Determine Multiple to Use Multiply Costs by Multiplier Adjust Using Qualitative Factors

Page 15: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

MultiplierMultiplier

1 / Desired Food Cost Percentage Example 1 / 40% = 2.5

Page 16: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Alternative to MultiplierAlternative to Multiplier

Divide Costs By Desired Food Cost Percentage

Example $3.00 Cost / 40% = $7.50 Selling Price

Page 17: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Ingredient Ingredient Mark Up Approach Up Approach

If total ingredients cost $1.32 and you have a 40% desired Food Cost– Multiplier = 1/0.4 = 2.5– Suggested Price = $1.32 * 2.5 = $3.30

– Would suggest rounding to $3.50

Page 18: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Mark Up ApproachesMark Up Approaches

Prime Ingredient Mark Up Determine Prime Ingredient Cost Some Versions Add in a Fixed Dollar

Amount for Other Ingredients

Page 19: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Mark Up ApproachesMark Up Approaches

Prime Ingredient Mark Up (Continued)

Determine Multiple to Use - Higher Than Mark up (Arbitrary)

Multiply Costs by Multiplier Adjust Using Qualitative Factors

Page 20: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Prime Ingredient Mark Up Approach

If Prime Ingredients cost $0.59 and you have a Prime Multiplier of 7.8– Suggested Price = $0.59 * 7.8 = $4.60

– Would suggest rounding to $4.75

– Note, the Prime Multiplier is based on history or industry standards there is not a formula for it. It is usually higher than the ingredient multiplier

Page 21: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Rooms Pricing Traditional Rooms Pricing Traditional MethodMethod

$1 Per $1,000 Cost Per Room Doesn’t Consider Current Value Doesn’t Consider Other Services Assumes 70%occupancy Assumes Profitable Food and

Beverage

Page 22: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Rooms Pricing Traditional Rooms Pricing Traditional MethodMethod

If $100,000,000 to build a 5,000 room hotel

= 100,000,000 / 5,000

= 20,000 per room

= 20,000 per room / $1,000

= $20.00 per room rate

Page 23: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Rooms PricingRooms Pricing Hubbart Hubbart Formula Formula

““Bottoms Up”Bottoms Up” Start With ProfitStart With Profit Determine Pretax ProfitDetermine Pretax Profit

Page 24: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Rooms PricingRooms Pricing Hubbart Hubbart FormulaFormula

Add in Fixed ChargesAdd in Fixed Charges Add in Undistributed Operating Add in Undistributed Operating

CostsCosts Estimate Non Room Income (Loss)Estimate Non Room Income (Loss) Sum Is Rooms Department IncomeSum Is Rooms Department Income

Page 25: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Rooms PricingRooms Pricing Hubbart Hubbart FormulaFormula

Rooms Revenue Equals Rooms Rooms Revenue Equals Rooms Income Plus Rooms Department Income Plus Rooms Department CostsCosts

ADR = Room Revenue / Rooms to Be ADR = Room Revenue / Rooms to Be SoldSold

See page 371 for exampleSee page 371 for example

Page 26: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

ADR to Single and Double ADR to Single and Double RatesRates

(Singles Sold * Single Rate) + (Singles Sold * Single Rate) + (Doubles Sold * (Single Rate + Price (Doubles Sold * (Single Rate + Price Differential)) = Average Rate * Rooms Differential)) = Average Rate * Rooms SoldSold

Solve for Each Rate Solve for Each Rate

Page 27: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Rate Calculation

Assume 200 room hotel with occupancy of 75% and double occupancy of 40% with ADR or 68.71 (doubles are $10 more than singles

Sell (.75 * 200) 150 rooms per day90 singles 60 doubles

Page 28: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Rate Calculation

Let X = Single Room Rate 90x + 60(x + 10) = 67.81 * 150 90x + 60x + 600 = 10,171.50 150x = 9,571.50 x = 63.81 Single Rate

x + 10 = 73.81 Double Rate

Page 29: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Yield ManagementYield Management

Increasing the Rooms RevenueIncreasing the Rooms Revenue

Page 30: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Yield ManagementYield Management

Take the Guess Work out of Your Take the Guess Work out of Your Rooms InventoryRooms Inventory

The Business of Selecting the Most The Business of Selecting the Most Profitable Reservations Profitable Reservations

Yield Management Is the Process of Yield Management Is the Process of maximizing the total revenues, rather maximizing the total revenues, rather than selling more roomsthan selling more rooms

Page 31: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Why Yield Management ?Why Yield Management ?

Increase Room Revenues Increase Room Revenues Improve Total Corporate Profitability Improve Total Corporate Profitability Enter New Markets With Strategic Enter New Markets With Strategic

Pricing Pricing Identify and Respond More Quickly to Identify and Respond More Quickly to

Changing Market Trends Changing Market Trends Manage Distribution Channels More Manage Distribution Channels More

Effectively Effectively

Page 32: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

What We Gain Is:What We Gain Is: Assume 100 room hotel and you can Assume 100 room hotel and you can

sell either to business or group:sell either to business or group:– Business - ADR = $80 Business - ADR = $80 – Business books 1 week out, and have Business books 1 week out, and have

40 business guests already booked and 40 business guests already booked and can book 55 more in the next 3 weekscan book 55 more in the next 3 weeks

– Group - ADR = $55Group - ADR = $55– Groups books 3 week outGroups books 3 week out– It is 4/1/02 and a group wants to book 20 It is 4/1/02 and a group wants to book 20

rooms for 4/21-11/02rooms for 4/21-11/02

Page 33: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

What We Gain Is:What We Gain Is: Option 1 Accept the GroupOption 1 Accept the Group

Group Rooms 20 * $55.00 = $1,100Group Rooms 20 * $55.00 = $1,100

Business Rooms 80 * $80 = $6,400Business Rooms 80 * $80 = $6,400

Total $7,500Total $7,500

Option 2 - Reject the GroupOption 2 - Reject the GroupBusiness Rooms 95 * $80 =$7,600Business Rooms 95 * $80 =$7,600

Since only $100 difference look at the overall revenue Since only $100 difference look at the overall revenue that will be generated from each option (ie food and that will be generated from each option (ie food and bev)bev)

Page 34: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Menu EngineeringMenu Engineering

A Tool to Increase Food and A Tool to Increase Food and Beverage ProfitsBeverage Profits

Page 35: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Breaking Out of the BoxBreaking Out of the Box

Is It Really Important to Sell Each Is It Really Important to Sell Each Guest a Selection From Each Part of Guest a Selection From Each Part of the Menu?the Menu?

Is Food Cost Percentage the Best Is Food Cost Percentage the Best Measurement of Performance?Measurement of Performance?

Page 36: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Breaking Out of the BoxBreaking Out of the Box

Can We Determine the Exact Labor Can We Determine the Exact Labor Cost for Each Item Sold on the Cost for Each Item Sold on the Menu?Menu?

Should Selling Prices Be Determined Should Selling Prices Be Determined on a Consistent Mark-up Basis?on a Consistent Mark-up Basis?

Page 37: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Selling the Entire MenuSelling the Entire Menu

Drives up Check Average and That Is Drives up Check Average and That Is GoodGood

Additional Points of Service Reduces Additional Points of Service Reduces Seat TurnoverSeat Turnover

Waiting Time for Table May Cause Waiting Time for Table May Cause Loss of CustomerLoss of Customer

Page 38: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Selling the Entire MenuSelling the Entire Menu

Would You Rather Serve a Dessert at Would You Rather Serve a Dessert at a Cost of $2 for $5 or an Entrée at a a Cost of $2 for $5 or an Entrée at a Cost of $4 for $10?Cost of $4 for $10?

Page 39: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Food Cost PercentageFood Cost Percentage

Ratio of Cost of Goods Sold to SalesRatio of Cost of Goods Sold to Sales Gross Profit Is Sales Minus Cost of Gross Profit Is Sales Minus Cost of

Goods SoldGoods Sold Objective Is to Increase Gross ProfitObjective Is to Increase Gross Profit

Page 40: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Food Cost PercentageFood Cost Percentage

Do You Deposit Percentages or Do You Deposit Percentages or Dollars?Dollars?

Item “A” Costs $4 and Sells for $12 or Item “A” Costs $4 and Sells for $12 or 33%33%

Item “B” Costs $8 and Sells for $20 or Item “B” Costs $8 and Sells for $20 or 40%40%

Which One Would You Rather Serve Which One Would You Rather Serve (All Other Things Being Equal)?(All Other Things Being Equal)?

Page 41: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Labor CostLabor Cost

Labor Is a Mixed Cost - a Fixed Labor Is a Mixed Cost - a Fixed Component and a Variable Component and a Variable ComponentComponent

Customer Demand Is Variable on a Customer Demand Is Variable on a Daily BasisDaily Basis

Daily Labor Is Scheduled Based on Daily Labor Is Scheduled Based on Forecasts Which Inherently Are Forecasts Which Inherently Are ImpreciseImprecise

Page 42: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Labor CostLabor Cost

Therefore, Exact Labor Cost Therefore, Exact Labor Cost Quantification on a Per Item Basis Is Quantification on a Per Item Basis Is Impossible to ComputeImpossible to Compute

Can Rank Labor Cost Per Item (High Can Rank Labor Cost Per Item (High or Low Relative to the Items in the or Low Relative to the Items in the Mix) Mix)

Page 43: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Menu EngineeringMenu Engineering

Smith and KasavanaSmith and Kasavana Analyzes Popularity and Analyzes Popularity and

Contribution MarginContribution Margin Two by Two MatrixTwo by Two Matrix Classified Items As Stars, Dogs, Classified Items As Stars, Dogs,

Puzzles, or PlowhorsesPuzzles, or Plowhorses

Page 44: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

PopularityPopularity

Item Is Popular If Individual Item’s Item Is Popular If Individual Item’s Sales Mix Exceeds 70% of the Sales Mix Exceeds 70% of the Average Popularity Average Popularity

Average Popularity = (100% / Number Average Popularity = (100% / Number of Items) * (70%)of Items) * (70%)

Page 45: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Popularity ExamplePopularity Example

10 Items10 Items Average Popularity = (100% / 10) * Average Popularity = (100% / 10) *

(70%) = 7%(70%) = 7% If Individual Sales Mix Is > 7%, The If Individual Sales Mix Is > 7%, The

item has HIGH Popularityitem has HIGH Popularity If Individual Sales Mix Is < 7%, The If Individual Sales Mix Is < 7%, The

item has LOW Popularityitem has LOW Popularity

Page 46: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Contribution MarginContribution Margin

Selling Price Minus Variable Costs or Selling Price Minus Variable Costs or Gross ProfitGross Profit

Compute for Each ItemCompute for Each Item

Page 47: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Weighted Average Weighted Average Contribution Margin Contribution Margin

CalculationCalculation Compute Individual Contribution Compute Individual Contribution

MarginMargin Multiply Item Contribution Margin by Multiply Item Contribution Margin by

Number of Item Sales Number of Item Sales Result Is Total Contribution MarginResult Is Total Contribution Margin

Page 48: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Weighted Average Weighted Average Contribution Margin Contribution Margin

CalculationCalculation

Divide Total Contribution Margin by Divide Total Contribution Margin by Number of Sales Number of Sales

Result Is Weighted Average Result Is Weighted Average Contribution Margin Contribution Margin

Page 49: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Contribution MarginContribution Margin

Compare Against Weighted Average Compare Against Weighted Average Contribution Margin for Menu Contribution Margin for Menu Section EngineeredSection Engineered

If Item CM Is > WACM - Label “HIGH”If Item CM Is > WACM - Label “HIGH” If Item CM Is < WACM - Label “LOW”If Item CM Is < WACM - Label “LOW”

Page 50: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

ClassificationsClassifications

Star - High Popularity & High CM– Continue promoting item

Plow Horse - High Popularity & Low CM– Re-price the item to increase CM

Puzzles - High CM & Low Popularity– Promote the item to increase popularity

Dogs - Low CM & Low Popularity– - Drop the item from the menu

Page 51: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Menu Engineering ConcernsMenu Engineering Concerns

Ignored Variable Portion of Labor Ignored Variable Portion of Labor CostCost

Inconsistent With Performance Inconsistent With Performance EvaluationEvaluation

Difficult to Collect DataDifficult to Collect Data Extensive CalculationsExtensive Calculations ““So What” Theory So What” Theory

Page 52: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Adjust Sales Mix Without Adjust Sales Mix Without CostCost

Create Signature Item High in Create Signature Item High in Contribution MarginContribution Margin

Train Staff on Contribution Margin Train Staff on Contribution Margin PrinciplesPrinciples

Provide Periodic Tastings to Public Provide Periodic Tastings to Public for Items Low in Popularity but High for Items Low in Popularity but High in Contribution Margin in Contribution Margin

Page 53: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.

Adjust Sales Mix Without Adjust Sales Mix Without CostCost

Use Internal Marketing ToolsUse Internal Marketing Tools Reevaluate Pricing Strategies Using Reevaluate Pricing Strategies Using

Data, Profit Factor, and Elasticity of Data, Profit Factor, and Elasticity of DemandDemand

Consider Profitability When Printing Consider Profitability When Printing MenusMenus

Page 54: Cost Approaches to Pricing Chapter 8 Pricing Questions n n Which Costs Are Relevant in the Pricing Decision? n n What Is the Common Weakness of Informal.