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  • Economy Pricing: by James Alden S. Magbanua

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    James Alden Magbanua
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    Economy pricing is a strategy where products are priced lower due to reduced production costs, without additional expenses for advertising or marketing. It allows businesses to price items based on their actual production value in a "volume game" to make profits through increased sales. The key factors in economy pricing are production costs, profit margins, and costs, following the formula that price equals production cost plus profit margin. While it can increase brand awareness and acquire customers through low costs, economy pricing also faces risks of competition, customer disloyalty, and concerns over lower quality.

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    Economy pricing is a strategy where products are priced lower due to reduced production costs, without additional expenses for advertising or marketing. It allows businesses to price items based on their actual production value in a "volume game" to make profits through increased sales. The key factors in economy pricing are production costs, profit margins, and costs, following the formula that price equals production cost plus profit margin. While it can increase brand awareness and acquire customers through low costs, economy pricing also faces risks of competition, customer disloyalty, and concerns over lower quality.

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    13 views6 pages

    Economy Pricing: by James Alden S. Magbanua

    Uploaded by

    James Alden Magbanua
    Economy pricing is a strategy where products are priced lower due to reduced production costs, without additional expenses for advertising or marketing. It allows businesses to price items based on their actual production value in a "volume game" to make profits through increased sales. The key factors in economy pricing are production costs, profit margins, and costs, following the formula that price equals production cost plus profit margin. While it can increase brand awareness and acquire customers through low costs, economy pricing also faces risks of competition, customer disloyalty, and concerns over lower quality.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Economy Pricing

    By James Alden S. Magbanua.


    What is economy pricing?
    Economy pricing is a pricing strategy where products have lower
    prices due to low production costs.

    Economy pricing allows businesses to price products according to their


    production value because they don’t acquire the extra costs of
    advertising or marketing.
    But making a profit with economy pricing is a “volume game”.
    Economy Pricing Strategy
    Production costs, profit margins, and cost are the three factors behind
    economic pricing.

    PRICE = PRODUCTION COST + PROFIT MARGIN


    Economy Pricing
    Advantages
    - Increase in Brand Awareness
    - Low Costs
    - Customer Acquisition
    Economy Pricing
    Disadvantages
    - Competition
    - Customer Disloyalty
    - Low Quality
    Thank you!

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