Introduction to Price (05:00)
Price determines how much income the product earns. If the price is too high and demand is too low, then a company may not sell anything. Pricing is a balancing act.
Normal and Inferior Goods (03:32)
Common grades are when demand rises along with income. Ordinary household items are purchased when people receive raises. Substandard products are in demand when there is a recession.
Pricing Strategies (03:34)
Businesses set the price of a product to follow a strategy. Cost plus pricing is set with no reference to market conditions. Garages and restaurants work on the same variable pricing principles.
Predatory Pricing Destroys Competition (07:34)
Price wars can benefit consumers. Supermarket cost battles over milk forced small dairy farmers out of business. In theory, competition keeps energy prices low, but electric bills continued to rise in the U.K.
The Rising Cost of "Cost Plus" (03:53)
A catering business uses cost plus pricing because the price of ingredients often changes. This can be problematic when food costs rise. Droughts and flooding can increase the price of food items.
Innocent Drinks: The Price of Innocence (01:43)
Innocent was the big marketing success story of the early 2000s. This company's marketing strategy cashed in on the consumers' growing health consciousness. Later, customers turned to cheaper brands.
99p Stores: The Price of Success (01:34)
Ninety nine cent stores sell multiple product lines. Poundland started in the U.K. in 1990 and benefited from the recession. During an economic slump, people shopped in stores they would not patronize during a financial boom.
Diesel: The Price of Style (02:01)
The jeans company claims to be the ultimate "rock chic for style." This business has such high prices that it does not compete with any other brand.
Ryanair: The Price of Cheap Flights (01:43)
With taxes and fuel price increases, cheap flights ended for Ryanair and the airline had to re-brand. Surveys showed that the inconvenience of cheap travel did not deter customers from choosing inexpensive fares.
The Energy Sector: Monopoly Pricing? (01:58)
The United Kingdom energy industry was privatized in the early 1990s. Market forces were meant to keep prices down and drive up efficiency, but the energy division came under attack in 2012.
The Supermarkets: The Price of Binge Drinking (01:29)
Britain's binge drinking culture has gone unrecognized. Alcohol abuse wrecks people's lives. Young alcoholics in the United Kingdom consume over a gallon of alcohol every day.
For additional digital leasing and purchase options contact a media consultant at 800-257-5126
(press option 3) or email@example.com.