Profit - Oriented Pricing Strategy - Explained
What is a Pricing Strategy focusing on Profit?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
Table of ContentsWhat is a Profit-Oriented Pricing Strategy?
What is a Profit-Oriented Pricing Strategy?
A profit-oriented pricing strategy means that we're going to set our product price based on a particular profit goal. That could be a target return - meaning we want to make a certain percentage on each unit that we sell or it could be that we want to maximize profit.
As you probably know raising price will tend to decrease the number of units sold. So, setting the highest price is not always the way to maximize profit.
Next, one thing that we need to keep in mind if we take a profit-oriented pricing strategy is this tends to put sort of upward pressure on our price. In other words, if our concern is profit, we tend to price a little higher than if we're more concerned with something like market share.
So, these are different ways that we could go about devising our profit - oriented pricing strategy.
- What is the Right Price for a Product?
- Competition-Driven Pricing
- Profit-Oriented Pricing Strategy
- Sales-Oriented Pricing Strategy
- Status Quo Pricing Strategy
- Value-Based Pricing Strategy
- Penetration Pricing Strategy
- Manufacturers Suggested Retail Price (MSRP) Definition
- Price Skimming
- Why Give Discounts?
- Trade Allowances
- Charging for Product Transportation
- Legal Issues with Pricing
- What is Product Dumping?
- What is Price Fixing?
- Why is Price Fixing Harmful?
- What is Price Discrimination?
- Why Pricing Discrimination is Harmful