Canare, Kriszel Chie G.
BSBA-MM2A
Reflective Essay
Before watching the video, I have an idea or knowledge about the four
common pricing structures. Because it also discussed during my 1st year. One of the
most important business decisions you'll make is the price you charge for your product
or service. There are several method of budgeting product an services each method has
it’s pros and cons and some clients have distinct preference for one form to another.
Pricing strategies are the processes and methodologies that businesses use to
determine the prices for their goods and services. If pricing refers to how much you
charge for your products, then product pricing strategy refers to how you determine
that amount. The first one is cost plus pricing, Cost-plus pricing, also known as gross
margin pricing, is the most common pricing method. This is one of the simplest pricing
strategies. You just take the product production cost and add a certain percentage to it.
While simple, it is less than ideal for anything but physical products. The fact that
marketers do not have to forecast general business conditions or customer demand is
one of the main reasons why the cost-plus method appeals to them. Profits will be on
track if sales volume forecasts are reasonably accurate. Packaged pricing it’s just simple
because the meaning itself is based in the name. It packages multiple services vendors
and costs to provide a service direct costs, gross percentage profit is factored into the
price to client representing an all inclusive charge such as tours which are a price per
person the budget includes for minimum and maximum number of guests all
inclusions, duration of services, and many other factors that influence pricing. Package
pricing is commonly used on tour recreational activities and off property evening
events. Menu Pricing refers to the process of determining the price at which you want
to sell various dishes in your restaurant. When deciding on a menu price, you consider
