I.

TOPIC: IMPLICATIONS OF PRICE FIXING SYSTEM TOWARDS SALES REVENUE

II.

REASONS OF INVESTIGATION:

The reasons of investigation why I wanted to study this topic because implications of price fixing system towards sales revenue query can be used to perform a sales analysis for one or more media issues and the title using a sales/revenue evaluation. The intent of price fixing may be to push the price of a product as high as possible, leading to profits for all sellers but may also have the goal to fix, peg, discount, or stabilize prices. The defining characteristic of price fixing is any agreement regarding price, whether expressed or implied. Price fixing requires a conspiracy between sellers or buyers. The purpose is to coordinate pricing for mutual benefit of the traders. For example, manufacturers and retailers may conspire to sell at a common "retail" price; set a common minimum sales price, where sellers agree not to discount the sales price below the agreed-to minimum price; buy the product from a supplier at a specified maximum price. Prices can be easily changed and easily matched by your competitors. Consequently, your products price alone might not provide your company with a sustainable competitive advantage. Nonetheless, prices can attract consumers to different retailers and businesses to different suppliers. Organizations must remember that the prices they charge should be consistent with their offerings, promotions, and distribution strategies. In other words, it wouldnt make sense for an organization to promote a high-end, prestige product, make it available in only a limited number of stores, and then sell it for an extremely low price. The price, product, promotion (communication), and placement (distribution) of a good or service should convey a consistent image. If youve ever watched the television show The Price Is Right, you may wonder how people guess the exact price of the products.

III.

METHODS/STRATEGIES IN DATA GATHERING: The method that we will using in data gathering is the Cost-plus pricing - Set the price at your production cost, including both cost of goods and fixed costs at your current volume, plus a certain profit margin. Target return pricing Set your price to achieve a target return-on-investment (ROI). Value-based

pricing - Price your product based on the value it creates for the customer. This is usually the most profitable form of pricing, if you can achieve it. The most extreme variation on this is "pay for performance" pricing for services, in which you charge on a variable scale according to the results you achieve. Psychological pricing - Ultimately, you must take into consideration the consumer's perception of your price, figuring things like: Positioning - If you want to be the "low-cost leader", you must be priced lower than your competition. If you want to signal high quality, you should probably be priced higher than most of your competition. Popular price points - There are certain "price points" (specific prices) at which people become much more willing to buy a certain type of product. Fair pricing - Sometimes it simply doesn't matter what the value of the product is, even if you don't have any direct competition. There is simply a limit to what consumers perceive as "fair". Your price must be enough higher than costs to cover reasonable variations in sales volume. If your sales forecast is inaccurate, how far off can you be and still be profitable? Ideally, you want to be able to be off by a factor of two or more (your sales are half of your forecast) and still be profitable. You have to make a living. Have you figured salary for yourself in your costs? If not, your profit has to be enough for you to live on and still have money to reinvest in the company. Your price should almost never be lower than your costs or higher than what most consumers consider "fair". This may seem obvious, but many entrepreneurs seem to miss this simple concept, either by miscalculating costs or by inadequate market research to determine fair pricing. Simply put, if people won't readily pay enough more than your cost to make you a fair profit, you need to reconsider your business model entirely. How can you cut your costs substantially? Or change your product positioning to justify higher pricing? Pricing is a tricky business. You're certainly entitled to make a fair profit on your product, and even a substantial one if you create value for your customers. But remember, something is ultimately worth only what someone is willing to pay for it.

IV.

REFERENCES:

Library Books:
Fundamentals of Marketing (ninth edition) - William J. Stanton Page 464465=466,467 - Michael J. Etzel (advertisement: interactive) - Brucce J. Walker Principles of Marketing (international Edition and seventh Edition) - Philip Kotler Page- 670, 67 - Gary Anustrong (interactive Advertisement) Principles of Marketing Management - Felitos U. Evangelista - Dominador A. clement Jr. - Nadide Michelle M. Sicat - Alma C. Dacanay (interactive Advertisement) Maria Victoria E.Anonuevo - Elizabeth M. Zarate - Melito S. Salazar Jr.

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Internet:
Bransford, J. D., Cocking, R. R., & Brown, A. L. (2000). Technology to Support Learning. How People Learn: Brain, Mind, Experience (pp. 206-230). Washington DC: National Academy Press. Gilbert, L. S. (1999). Where is my Brain? Distributed Cognition, Activity Theory, and Cognitive Tools (Working Paper). Houston, Texas: Association for Educational Communications and Technologies (AECT). (ERIC Document Reproduction Service No. ED436153) Iiyoshi, T., Hannifin, M. J., & Wang, F. (2005). Cognitive tools and student-centered learning:Rethinking tools, functions, and applications. Educational Media International, 42, 281-296. Retrieved February 19, 2007.