Asked by Maria Mendez on May 03, 2024
Verified
The manager of a restaurant supply company determined prices by adding a standard markup to her costs. What might the manager be missing when it comes to effective pricing decisions?
Standard Markup
The routine addition of a set percentage to the cost of goods to establish the selling price, commonly used in retail to ensure profitability.
Effective Pricing Decisions
The strategic determination of product prices to maximize profits and meet market demand.
- Recognize the critical role of pricing strategies in delivering value to the customer as well as the business.
Verified Answer
NI
Noor Ishmah MukhtarMay 10, 2024
Final Answer :
Pricing should be based on the potential buyer's belief about its value. Some of the items offered by the restaurant supply company may have greater perceived value than other items.
Learning Objectives
- Recognize the critical role of pricing strategies in delivering value to the customer as well as the business.
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