Pricing Policy

Thomas More was a great saint because of his trust in God and because of the virtues he developed.

Competition within the industry as well as market supply and demand conditions set the price of products sold.

The price adjusts to rise when the quantity demanded exceeds the quantity supplied and for price to fall when the quantity supplied exceeds the quantity demanded is a central elements to supply and demand. Although individuals tendencies to change prices exist as quantity supplied and quantity demanded differ the changes in price brings the law of supply and demand into play. Whenever the quantity supplied and quantity demanded are unequal, price will stay the same cause no one will have an incentive to change. One thing to remember equilibrium is not the model framework they use to look at the world. Although to establishing the current value of a consumer product Economics has evolved through the centuries there are a few factors that led to a change in

E., & Gould, J. P., 1966). Furthermore, the members are price takers and do not have the power to influence price changes. We now understand that perfectly competitive markets are very rare and that in reality our product exists in a different type of market. The four types of markets are: Monopoly, Oligopoly, Monopolistic competition, and perfect competition. Our company has gained enough power in the market to influence price and allow it to choose its own optimal price. This means that establishing an equilibrium where QD = QS does not necessarily apply. Perhaps our company has developed an innovation that makes the quality of our microwave meal much better than our competitors or we have developed a process than drastically lowers the cost of processing the ingredients for our product. Regardless of the reason, our company now has a competitive advantage and we must take advantage of it in order to become dominant in our industry.

What are the main reasons why government should take only a limited role in a market economy?

“It’s down to seven seconds. You see the time…Whittenburg…. Oh it’s a long ways, Oh he’s there! They won it…on a dunk!” Billy Packer said this when covering the historical run by the NC State Wolfpack to win the Division 1 NCAA tournament in a dramatic fashion. A team with no chance of making the tournament, let alone winning the championship, does the impossible and wins the NCAA Division 1 championship. Despite NC State being a smaller school compared to the big basketball powerhouses like Virginia, UNC, Houston and many others, they had players work and will their way to the finish line. If players were paid, you wouldn’t see players like Michael Jordan, Hakeem Olajuwon, or Ralph Sampson on different teams. It would be the college with the most money, could pay the best student-athletes, the most money and Cinderella stories for the most part would disappear. Dynasties of college sports would be made. Money would ruin college sports more than it already has. It has already stripped championships, ruined players images and futures, and tarnished reputations of colleges. The Fab 5, the near “3-Pete” for Oklahoma University, and the USC Trojans football team scandal, are just a few instances where college sports were affected wrongly by the idea of “play for pay.” Colleges and Universities should not pay students to participate in college sports because of all the benefits the athletes receive, the fact that the colleges wouldn’t be able to pay for other

something else. A business can use a variety of pricing strategies. The price can be set to maximize profitability Businesses may benefit from lowering or raising prices. Pricing depends on the needs and behavior of customers. Business need to find what pricing will make them successful business.

Government plays a crucial role in the market economy by ensuring the laws and regulation are abide by, and control the production of the private sectors, although, over the years its efforts in controlling such economies are minimal and insignificant. Market forces of demand and supply play a major role in setting trends that such market economies follow. Economic growth, inflation, interest rates, wage rates of workers and unemployment rates are some of the fields the government takes part in controlling, to boost the Gross National Product (GNP) of the state.

Internal factors are establishing prices and marketers ought to take into consideration the importance and significance of a number of factors which is the outcome of the organizations choices, results, and actions. These factors are manageable by the organization and they may be modified, if need be. In spite of this, making a swift transformation is not always the answer or the quick fix. For example, product pricing is determined or influenced by the productivity of an industrial facility. The salesperson realizes that rising productivity can decrease of expense of manufacturing every product and therefore lets the salesperson to possibly reduce the price. External factors are not managed by the organization but then again it will influence the choices of pricing. Being able to better comprehend these factors would entail the marketer conduct research to observe and evaluate everything that is going on in all of the markets that the organization works for because of the influences of these factors can differ within the market (Factors Affecting Pricing Decision, 2016). External forces that can impact the organization are unmanageable because the organization does not manage them however, the organization can still take action and adjust to their occurrences and effects with the organizations manageable blend of components from the organizations internal setting. The unmanageable influences in the external setting are rivalry, governmental policies and plan, natural influences, social and cultural influences, demographic determinants, and changes within technology (Bright,

Based on these 6 factors in setting a price: selecting the pricing objective, determining demand, estimating costs, analyzing competitors costs, prices and offers, selecting a pricing method and selecting the final price, Singapore GP Pte Ltd employed 2 different pricing strategies. They are

a) In a perfect competitive market, the sole determinant of pricing is the market demand and the supply curves. A demand curve refers to the total amount that consumers will pay for their products. The supply curve is the total amount that the producers can actually make to supply to the company at the price they can afford or are willing to pay. Another factor in a perfect competitive market structure is the equilibrium price which is basically when the supply of the market meets the market demand of the consumers. Anther unique feature of a perfect competition market is that it is a price taker. In essence, this means that the company doesn’t have any influence on the price. Again, this can only be caused through a market that has a large number of firms with identical products. (Samuelson and Marks, 2010).

In a free market, the allocation of limited resources and the effect of supply and demand to establish prices is accomplished by the market. However, history has proven that markets collapse making the use of government intervention necessary. Governments intervene as a way to address inefficiency in which case there are those who have too much of a resource while others do not have enough.

there are a number of different buyers and sellers in the marketplace. This means that we have competition in the market, which allows price to change in response to changes in supply and demand. Furthermore, for almost every product there are substitutes, so if one product becomes too expensive, a buyer can choose a cheaper substitute instead. In a market with many buyers and sellers, both the consumer and the supplier have equal ability to influence price.

Competition within the industry as well as market supply and demand conditions set the price of products sold.

Value pricing is gaining attention among businesses. However, academic studies on pricing are not as many as those on other classical pricing strategies. Additionally, an analysis conducted between 1983 and 2006 shows that the average adoption rate of value pricing is only 17% (Hinterhuber, 2008), which means that the cost-based and competition-based pricing still dominating in pricing decisions.