Inflation can hike your costs and prompt you to raise your list price. You may decide to bring your price down for an extended period. Competitive pressures can also mandate long-term price cuts. C. Product Adjustments 1. You may adjust the product you offer while keeping the price constant.
Marketers can reduce the amount or quality or the product offered at the same price.
D. Price Discounts and Allowances 1. Discounts and allowances help you maintain relationships with organizational customers and strengthen your competitive position. A discount gives customers a direct price break for taking a specific action such as buying when or how you want them to buy. Quantity discounts , or price breaks per unit, allowed on large-volume orders, give customers a reason to buy more from you. Noncumulative quantity discounts are applied one order at a time.