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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