...Price Transparency Has The Time Come?? Price transparency works when all the parties involved in the transaction know the pricing behind the products being bought and sold. In regards to medical field; this would be the pricing of medical services. Historically, there has been a great deal of secrecy that often surrounds pricing. A number of initiatives in the late 20th century attempted to combat this by making information about prices more available. When price transparency is working well it benefits sellers and buyers. It protects the people from unfair or questionable pricing and helping buyers understand how pricing works, and the real value of things they buy. The big question remains, is the medical field ready for this? Several factors are involved in price transparency beyond the basic disclosure of pricing. This includes knowledge about the availability of a product, as this can influence value, and the location of a product, which can also impact the overall price. Using this system buyers can compare options offered by several sellers, picking the seller with the best price, location and availability. Likewise, sellers can keep up with the market, the can stay aware of the going rate, and see how their competitors are pricing their products. One of the most challenging things amongst hospitals and most health systems across the Country is proving the information that patients, payers and employers need in order to make educated purchasing decisions. Some...
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...shoppers to easily compare prices across thousands of stores. But it also enables businesses to collect detailed information about a customer's purchasing history, preferences, and financial resources and to set prices accordingly. So when you buy an airplane ticket or a DVD online, you may pay a higher or lower price than another customer buying the very same item from the very same site. In September 2000, Amazon.com reportedly outraged some customers when its price discrimination was revealed. When a buyer reportedly deleted the cookies on his computer that identified him as a regular Amazon customer, watched the price of a DVD offered to him for sale drop from $26.24 to $22.74. Amazon had experimented with such random price tests more than once: Consumers also discovered the same year that Amazon was using dynamic pricing when customers comparing prices on a "bargain-hunter" Web site discovered that Amazon was randomly offering the Diamond Rio MP3 player for up to $51 less than its usual $233.95 price.1 In early June, the Annenberg Center at the University of Pennsylvania released a new study, "Open to Exploitation," which addressed online price discrimination among other subjects2. The Annenberg study identified instances of price customization on the Internet. A retail photography Web site, for example, charged different prices for the same digital cameras and related equipment, depending on whether shoppers had previously visited popular price-comparison sites. How they...
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...design the phones, to distribute the phones, and to promote the phones. Synergy Communication understands that the price must sustain these elements of the mix. Synergy Communication pricing strategy is based on the purpose that the organization will set itself to achieve. The company will develop a price strategy that will reflect skimming the price. This method will help Synergy Communication skim profits of the market layer by layer. For example, the company will set a high price, and then gradually lower the price to make the smart phone available to a wider market in India. Synergy Communication’s objective is to penetrate the smart phones market price, which is to set a low price to increase sales and market shares. The following method for the company is to focus on competition pricing. The company set the price for the phones according to the competitors. The variety of phones will range at a different price. The company will follow the product line pricing by adjusting the price according to the feature of each phone. For example, the smart phone with PIP (picture in picture) capability is priced higher than the smart phone without the feature. To stay competitive, Synergy Communication is currently developing a smart phone that will have exclusive features. Once the phone is released, it will have a premium price. The price is related to the unique features and capabilities. The strategy is to make up for any losses developed in the...
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...Business Proposal for Will Bury’s Price elasticity Scenario The purpose of this proposal is to provide recommendations to Will for increasing revenue, maximizing profits, determining the company’s profit-maximization quantity, increase product differentiation, and minimizing product costs. The proposal will also include the correlated processes for determining the appropriate recommendations and their correlation to pertinent economic principals. Company Overview Will Bury is an architect of innovation who has the foresight to forecast future trends in digital book technology. He has developed and patented a proprietary technology that takes printed words from text and creates a file which provides the option of reading digitally or listening to a synthetic voice rendition. Will is aware that he has access to books no longer under copyright protection at no cost. Furthermore, according to his assessment, he can significantly expand his catalog by paying an estimated $5.00 royalty fee per copy for copyrighted books. Although technologically savvy, Will appears to display deficient business aptitude which, thus far, has culminated in his lack of adequate facilities, human resources, and indecisiveness. This proposal will detail the measures Mr. Bury should take for optimal results within the present and subsequent speculative conditions. Efficiencies in production levels and price changes will be reflective of prescribed actions. This proposal was prepared under...
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...Marketing principles Price discrimination Outline 1. Introduction............................................................................................................................3 2. Conditions for price discrimination........................................................................................3 3. Types of discrimination..........................................................................................................4 4. Advantages/Disadvantages of price discrimination...............................................................5 5. Economic explanation.............................................................................................................6 6. Examples of price discrimination......................................................................................7-16 7. Price discrimination in universities..............................................................................17 - 23 8. Summary.............................................................................................................................24 What is price discrimination? The goal of every business is to maximize its profits and they can achieve this goal by successfully determining the price of their products. There are many different ways to deal with determining the price of the products. All of these ways are called – pricing strategies. Price discrimination is one of many ways how companies may determine the price of their product...
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...PRICE DISCRIMINATION Submitted By: S Date Abstract The aim of this research was to investigate the consumer’s buying behavior related to product differentiation. The report is comprised of three sections. The first section contains the introduction and background about the topic chosen is Product differentiation, the second sections contains the source of reports i.e. from where the data is collected and the last section belongs to the analysis, statistics and summary of the survey which is conducted by the researcher. Dedication A journey of thousand miles Begins with a single step But for that single step, One has to be motivated. This humble effort is dedicated to my sweet Mother & Great Father Who motivated me for That step and has been Guiding me to achieve The heights of an ideal life. Letter of Transmittal Project supervisor & course instructo Respected Ma’am, This letter is a response to the report “Price Discrimination”. The research is conducted to find the impact of price discrimination in our country with respect to the world. This is something which would take the rights of the people belonging to lower class to live in this world. Through this report we can create some awareness and at a snail’s pace we’ll absolutely reach to a conclusion which would b in our favor. Sincerely, Muhammad Najam Absar Taha TABLE OF CONTENTS i. Abstract…………………………………………………………...2 ii. Dedication……………………………………………….......
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...1. Price: Setting prices involves considering many factors, including the cost of food, cost of labor, what the competition is doing and what your target customers are willing to pay. Pricing is the only part of the marketing mix which brings in revenue. -Once a price has been set, consumers will often show a great deal of resistance to any attempts to change it. - Pricing frequently has important implications for the positioning of a product. - Price is the marketing mix variable for which a competitive response can be most quickly implemented. Comparing your menu with that of your competitors also helps. It not only opens more doors towards pricing your menu, it offers you a solid foundation on how to measure your profits. Performing a cross analysis helps uncover strengths and weaknesses in your pricing plan, specifically in terms of the way your items are priced and presented. By doing this, you determine which items are most popular, which are most profitable, which need extra publicity, and which need to removed or replaced. 2. Personal Health :The restaurant must have substitutes to replace those ingredients that might cause allergies or customer requests that chefs exclude them in food preparation. Religious restrictions, dietary demands, personal choices, special diets, and allergies cause people to ask for special cooking measures. Chefs learn to offer some regular meals that meet many restrictive needs or to change traditional preparations with substitute ingredients...
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...Question 5 – Transfer Price Division A, which is part of the ACF Group, manufactures only one type of product, a Bit, which it sells to external customers and also to division C, another member of the group. ACF Group's policy is that divisions have the freedom to set transfer prices and choose their suppliers. The ACF Group uses residual income (RI) to assess divisional performance and each year it sets each division a target RI. The group's cost of capital is 12% a year. Division A Budgeted information for the coming year is as follows. Maximum capacity | 150,000 Bits | External sales | 110,000 Bits | External selling price | $35 per Bit | Variable cost | $22 per Bit | Fixed costs | $1,080,000 | Capital employed | $3,200,000 | Target residual income | $180,000 | Division C Division C has found two other companies willing to supply Bits. X could supply at $28 per Bit, but only for annual orders in excess of 50,000 Bits. Z could supply at $33 per Bit for any quantity ordered. Required: (a) Division C provisionally requests a quotation for 60,000 Bits from division A for the coming year. (i) Calculate the transfer price per Bit that division A should quote in order to meet its annual profit target of $564,000. (5 marks) (ii) Calculate the two prices division A would have to quote to division C, if it became group policy to quote transfer prices based on opportunity costs. (4 marks) (b) Evaluate and discuss...
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...well as some storage pressure force majeure will allow food store's profits, so when the State Reserve force recently acquired wheat actively send food storage is the best choice. From nearly two years of milling enterprises' survival environment, this year's milling industry is still in a period of adjustment of the industry, the market is still shrinking, if future acquisitions weakened State Reserve, or the close of the acquisition, the domestic wheat market the lack of strong demand for the subject, prices rose difficult. From this year all over the feedback information can be seen, the supply of good quality wheat market this year is obviously insufficient, so good grain future prices must have room to rise, but the magnitude is not particularly large, sub-grain is concerned, although the recent price is not high, but still not recommended to continue to exist, because the second impurity grain itself, the more difficult long-term preservation, the next time the price of wheat rose difficult, and may even be reduced. Overall, this year's domestic wheat market...
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...Price discrimination is essentially a difference of price for the same product. Generally, Price discrimination refers to the situation where provider of goods or services implements a different sales price or charge standard for different recipients of same level and same quality of goods or services. Operators have no reasonable grounds for providing a different price of the same kind of goods or services to the buyers under the same conditions; this constitutes price discrimination. Price discrimination is an important monopolistic pricing behavior; it is a pricing strategy for a monopoly enterprise to obtain excessive profits through the difference in price. In a perfectly competitive market, all consumers pay the same price for homogeneous products. If consumers have sufficient economic knowledge, then the difference of price on each fixed quality product will not exist because any seller who attempts to ask a price which is higher than the current market price will find that nobody would buy the product from him or her. However, in a monopoly or oligopoly market, price discrimination is very common as different consumers hold different opinions on the value of products or services; the difference of price is caused by the demand not only the cost. The prices which consumers are willing to pay usually differ from the market price; so the difference between market price and expected price generates a consumer surplus, which is the potential source of profit for the seller...
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...different responsibility centers. Under the subject cost allocation we studied alternative methods to charge user departments for the services rendered by service departments (frequently cost centers). Transfer prices are used to evaluate the goods and services exchanged between profit centers (divisions) of a decentralized firm. Hence, the transfer price is the price that one division of a company charges another division of the same company for a product transferred between the two divisions. 1. There are no cash flows between the divisions. The transfer price is used only for accounting purposes. 2. The transfer price becomes an expense for the receiving manager and a revenue for the supplying manager. 3. If intra-company transfers are accounted for at prices in excess of cost, appropriate elimination entries have to be made for external reporting purposes. Examples of items to be eliminated for consolidated financial statements include: 4. Intra-company receivables and payables. 5. Intra-company sales and costs of goods sold 6. Intra-company profits in inventories. 7. Purposes of Transfer Pricing There are two major reasons to operate a transfer pricing system: 8. Appropriate transfer prices help to coordinate the production, sales and pricing decisions of the different divisions. Transfer...
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...A PROBLEM OF PRICE Sue Jones sat at her desk reflecting on a pricing problem. Sue was a graduate of State University, where she majored in materials management. Since joining the small manufacturing firm of Prestige Plastics in Des Moines, she had been promoted from assistant supply manager to supply manager. She was responsible for buying the chemicals used in producing the firm’s plastic products. Sue was really perplexed by a particular procurement involving the purchase of X-pane, a chemical that was formulated specifically for Prestige Plastics. Thirty-one days ago, she forwarded a request for bids to six suppliers for Prestige’s estimated annual requirement of 10,000 drums of X-pane. Yesterday morning, Sue opened the five bids that had been received. The bids, F.O.B. Des Moines, were as follows: Price per drum ($) Total price ($) (for est ann req of 10,000 drums) Greater Sandusky Chemical 312 3,120,000 Chicago Chemical Co. 297 2,970,000 Tri-Cities Chemical 323 3,230,000 St. Louis Industries 332 3,320,000 St. Paul Plastics 340 3,400,000 The Chicago Chemical Company was low bidder for the fifth straight year. On the face of it, a decision to award the annual requirements contract to Chicago Chemical looked obvious. The day after the bid opening, the sales engineer from Greater Sandusky Chemical threw Sue a ringer. He said that no one would ever be able to beat Chicago Chemical’s price. His firm estimated that setup costs associated with producing X-pane would...
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...factors affecting product pricing in the UK". • Product and price: one of the 7 ps • Pricing of a product is extremely crucial for a business because “the price of your product can either break or make your business”[i] • Examples of any 2 companies where pricing has helped in it’s success and other where it has caused a major downfall: Wal-Mart have gained and retained leadership position in its industrysimply because of their unique pricing strategy. They devised a unique pricing strategy that set them apart and gave them competitive edge.[ii] • There are several factors that need to be taken under consideration before deciding your product pricing strategy. • Intensity of competition/ type of market structure. The 3 main market structures in UK. Perfect competition, monopoly, oligopoly. Selling a product with a high profit margin would obviously be any entreneurs’ wish. However this will not be possible in perfect competition but will only work in a monopolistic market. Thus while determining it’s product pricing strategy one of the major factors is the level of competition. For example if a rival firm sells the same product at a lower price then this could have an adverse effect on your sales. The greater the number of close substitutes, the more flexible one’s product pricing strategy will have to be(details. Example. Graph). It is often assumed that setting lowest prices for your product as compared to your rivals is the easiest way to escape...
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...Price rise is a world phenomenon today and inflation is affecting every section (rich and poor) of society. About three decades ago we could purchase wheat at thirty rupees a quintal, but today we cannot get it at less than three hundred rupees a quintal in big cities. Everything was within the reach of man until a few years ago. Today there is no limit to the price rise of all kinds of items. Millions of people in the world have to go hungry. They have to work hard to make both ends meet. In the pre-independence days, a clerk got only Rs. 60 per month, but now he gets about a ten thousand. Pays have gone higher, but the employs are not satisfied. They have large families to maintain and it becomes difficult to feed so many mouths with hardly any money. There is a dearth of cheap accommodation and there are many people living in slums. The prices of clothes are also high and often some people don't even have any money to buy these to cover themselves with. The government goes about imposing taxes after taxes on the citizens. This leads to a lot of money going into the national expenditure and into the pockets of corrupt leaders and the officials. Black marketing is another result of these heavy taxes and people begin to conceal their actual income. The government should impose taxes on hoarders and rich people. Production of agricultural goods should be increased along with industrial goods. Their prices should be fixed. The government should undertake a big scheme of rationing...
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...1 The cost of one bit of RAM and one bit of hard drive storage over the years will have to based on what size of the bit of ram and on bit of hard drive storage that are you using or trying to buy. But if you were trying to figure out the price range of one bit of ram the prices may range from $20.00 to over $100.00. However One bit of hard drive storage prices may range $100.00 to over $300.00 depends on where buy them from. 2 I think 100 TB hard drive will become commercially available probably 10-15 years from now. It will be an enormous capacity for a hard drive but will be necessary for streaming media. I think network connections will improve fast rate because capacity of the 100 TB hard drives. Also with the hard drive you will be able to you will be combine HDTV PVR's, MP3 players, DVD archives, and pictures into a giant media database. Transferring that much data from one machine to another may prove to be the hardest part of all when dealing with the device. 3 The RAM that you be able to purchase for $100.00 in the next ten years I imagine would be 8 tb or more because drives are becoming even more bigger. Like for instance today you can buy a 250GB for under $60 dollars. So I’m guessing it would be more cheaper from the information I gather that the hard drive will be inexpensive to buy but depending on what size do you...
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