1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Stels [109]
3 years ago
5

Advantages of value based pricing

Business
1 answer:
polet [3.4K]3 years ago
8 0

The first and foremost advantage of using Value based Pricing is the increased value of the brand. The high price of products makes people think that the product is of superior quality. Thus, the value of brand increases in the eyes of customers.

Value based Pricing helps in increasing the profits of the company. If your customers value your product and are willing to buy it at any price, then you have the opportunity to charge a high price for the product, and in this way, you can generate higher profit by selling the same units of products.

Companies ask their customers about their requirements and willingness to pay the price for the product. When you consider the opinion of your customers and create products to satisfy their needs, then they also feel loyal to your company.

Value based Pricing gives you a rough idea of the demand for your product in the market. You will know the approximate number of customers who can afford your product and are willing to pay high prices to buy your product. Having the idea of the demand for a product in the market helps a business to create supply accordingly.

You might be interested in
You are compiling Bertram Boat’s balance sheet. According to your calculations, Bertram has current assets of $85,000 and proper
iragen [17]

Answer:

$318,000

Explanation:

The computation of the total assets is shown below:

= Current assets +  property, plant, and equipment - difference in amount

= $85,000 + $235,000 - $2,000

= $318,000

The difference of amount is

= Account receivable - collected amount

= $50,000 - $48,000

= $2,000

Since the current asset is already given so we considered the difference in amount to find out the total asset.

3 0
3 years ago
The principle of diversification teaches us that using two securities it is always possible to find a portfolio with no short po
Oliga [24]

Answer:

C. Less than the variance of each asset, except when the two assets are perfectly positively correlated.

Explanation:

In diversification, there is the less risk in the portfolio that can be determined by the standard deviation. Also the risk can decrease at the time when the asset is lower than the perfect correlation and the same should be place in portfolio. Now if the asset along perfect positive correlation place in the portfolio so the the portfolio risk could be large than the risk of the individuals assets

6 0
3 years ago
What are long-term decisions that set the direction for the entire organization called?a. Tactical b. Operational c. Directional
kvv77 [185]

Answer:

The correct answer is letter "E": Strategic.

Explanation:

Strategic decisions imply analyzing what direction is the overall company going to take in the long run. It represents the groups of decisions high-rank executives must take to conduct the operations of the firm, the resources that will be used and how they will combine those factors to reach the organization's objectives.

8 0
3 years ago
Stewart Inc.'s latest EPS was $3.50, its book value per share was $22.75, it had 220,000 shares outstanding, and its debt-to-ass
stellarik [79]

Answer: Option (c) is correct.

Explanation:

Given that,

EPS = $3.50

Book value per share = $22.75

Shares outstanding = 220,000

Debt-to-assets ratio = 46%

Total Equity (Book Value) = Book value per share × Shares outstanding

                    = $22.75 × 220,000

                    = $5,005,000

Total Assets = \frac{Total\ Equity}{1 - Debt\ to\ assets\ ratio}

                     =  \frac{5,005,000}{1 - 0.46}

                     = $9,268,518.52

Debt outstanding = Total Assets - Total Equity

                              = $9,268,518.52 - $5,005,000

                              = $4,263,518.52

                              = $4,263,519 (approx)

5 0
3 years ago
What is the new fourth sector of the economy
Naddik [55]

information technology

5 0
3 years ago
Other questions:
  • Someone please help me!? :(
    14·1 answer
  • Closing a sale refers to: A. asking for a referral from a prospective customer.B. being turned down by a prospective customer.C.
    5·1 answer
  • How do you change the number of rows and columns displayed for an embedded Excel object on a PowerPoint slide?
    11·1 answer
  • Sofia pays Sam $50 to mow her lawn every week. When the government levies a mowing tax of $10 on Sam, he raises his price to $60
    6·1 answer
  • What additional proposal is made by a very worthy person a true lover of his country?
    12·2 answers
  • What happens when there are only a few large customers in the market?
    7·1 answer
  • JKL Insurance Company reported the following information on its accounting statements last year:
    9·1 answer
  • Shawn is a regional sales manager of a popular fortnightly magazine. He sets targets for and reviews the performances of the sal
    11·1 answer
  • Ruby enjoys working with other people. She has excellent leadership, interpersonal, and communication skills that she would like
    10·1 answer
  • a project requires an investment of $1,400 and has a net present value of $400. if the internal rate of return is 12%, what is t
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!