Thanks Chris and Gill . Google throws up hundreds of web resources for
product line pricing. Eg
Xref defines product-line pricing as Setting the price steps between various
products in a product line, based on differences in costs of manufacture
between the products, competitors' prices, and how customers evaluate the
different features in the product line.
Hmm. So why use the phrase range pricing. Have we still missed some OCR
subtlety ?
Regards
Richard Young
AST Teacher of Business Studies, Economics & ICT
Deputy Head of VI Form - Year 12
Wood Green School
Woodstock Road
Witney OX28 1DX
Tel 01993 702355
Fax 01993 774961
www.woodgreen.oxon.sch.uk
BECTa/Guardian Secondary School Web Site of the Year 2001
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-----Original Message-----
From: Economics, business, and related subjects
[mailto:[log in to unmask]] On Behalf Of Gill Kelley
Sent: 29 November 2002 17:28
To: [log in to unmask]
Subject: Re: What is "Range pricing" as a pricing strategy?
Hi Richard
Could this refer to what we used to call price-lining, or product line
pricing? The price of one item within a range is linked to the price of
another - for example, razors and blades - so one item is sold at a low
price in order to make a greater profit on another one (in this case, the
razor at a low price, and the blade at a high price).
Gill
----- Original Message -----
From: "Richard Young" <[log in to unmask]>
To: <[log in to unmask]>
Sent: Friday, November 29, 2002 5:15 PM
Subject: What is "Range pricing" as a pricing strategy?
> Calling all Biz Boffs :)
>
> As I slavishly work my way through the OCR syllabus I am perplexed by the
> term range pricing as a potential pricing strategy: I quote: "Pricing
> approaches which might be adopted: creaming (skimming); cost plus;
> competitive; destroyer pricing; contribution pricing; range pricing."
>
> None of my many books contains the term and a web search on the phrase
rang
> pricing throws up some very unhelpful text that helpfully suggest the
> maximum and minimum price a firm can charge for its product!. The maximum
> price is given by consumers willingness to pay for a given quantity? while
> the minimum price covers costs - possibly on variable in the short run? Am
I
> a million miles out?
>
>
> Regards
>
> Richard Young
> AST Teacher of Business Studies, Economics & ICT
> Deputy Head of VI Form - Year 12
> Wood Green School
> Woodstock Road
> Witney OX28 1DX
>
> Tel 01993 702355
> Fax 01993 774961
>
> www.woodgreen.oxon.sch.uk
> BECTa/Guardian Secondary School Web Site of the Year 2001
> [log in to unmask]
>
>
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