1. Choose two (2) approaches (e.g. Demand-, and Cost-oriented approaches)
2. Choose one method for each approach (e.g. I chose odd-even pricing for Demand-oriented approach and standard markup cost method for Cost-Oriented approach)
3. Use examples to illustrate these two methods that you've chosen to do.
For my two examples I chose demand oriented and cost oriented approach
I chose bundle pricing for my demand oriented and I chose cost plus pricing for the cost oriented approach
My first example that I will start off with is cost plus pricing which correlates with cost oriented approach. For the cost plus pricing say for example that you are a business owner of a up scale clothing store and you are showcasing some of your best items. So you can make a product that it is worth $12 and want a 50% profit margin and so you decide to price it at $24. Most retailers do this when they are trying to maximize profit.
My second example is bundle pricing which goes along with the demand oriented approach. For the bundle pricing I thought of Burger King . Many times they will have super deals where you get many food items for the price of one such as value meals. An example would include an bundle in which they were doing the 2 cheeseburgers, 1 small fries and 1 small drink for $3.29. This is an example of a bundle price because they are selling many things together at a lower price which would cost more if sold separately they also create big value since it is many items that have come together.
So basically i have to answer this question like the example you have given and your choice of pricing methods-
You choose Odd even pricing and Standard Markup cost method for pricing.
Odd even pricing is demand based pricing in which we put price of products or services by price ending with either odd number like 1,3,5,7 etc or even number like 0,2,4,6 etc.
Standard markup cost method is cost based pricing in which we add standard markup we want to earn and add it to the actual cost of the product.
Now we come to example which is main answer to your question-
My first example is Odd even pricing. I own a Coffee shop where customers can order coffee and snacks. In my store, the normal coffee starts at $2.99 . the other flavor prices like Chocolate, Mocha coffee, Caramel coffee starts at $3.99, $ 4.99 and $5.99 respectively. This show how my coffee prices at odd number pricing. We offer snacks like cupcakes at $ 1.50 per piece and donuts at $2.00
My second example is standard markup cost. I run Handmade jewelry shop. In this pricing method, I incur cost of $200 handmade jewelry like necklace.I want to set markup of $50 per unit so my pricing will be $250 for sale to customers.
Note- Please please give this an UPVOTE if it helped you. it helps me too. i appreciate it. THANKYOU.
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