Search results
Results From The WOW.Com Content Network
Variable pricing is a pricing strategy for products. Traditional examples include auctions, stock markets, foreign exchange markets, bargaining, electricity, and discounts. More recent examples, driven in part by reduced transaction costs using modern information technology, include yield management and some forms of congestion pricing.
Absorption pricing. This pricing method aims to recover all the costs of producing a product. The price of a product includes the variable cost of each item plus a proportionate amount of the fixed costs: Unit Variable Costs + (Overhead + Managing Costs) ÷ Number of units produced = Absorption Price. Fixed or variable costs, direct or indirect ...
Dynamic pricing. Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands. It usually entails raising prices during periods of peak demand and lowering ...
The variable pricing model is new to the fast-food industry, though customers have likely encountered if they’ve hailed a ride through Lyft or Uber. On its website, ...
Yield management is a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource (such as airline seats, hotel room reservations or advertising inventory). [ 1] As a specific, inventory-focused branch of revenue management, yield ...
Pricing science is the application of social and business science methods to the problem of setting prices. Methods include economic modeling, statistics, econometrics, mathematical programming. This discipline had its origins in the development of yield management in the airline industry in the 1980s, and has since spread to many other sectors ...
Two of the main types of interest rates you’ll come across are fixed rates and variable rates. The main difference is that fixed rates stay the same over time while variable rates can change ...
Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the product's unit cost. Essentially, the markup percentage is a method of generating a particular desired rate of return. [ 1][ 2] An alternative pricing method is value-based pricing.