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Introduction to business: distribution and pricing

Ted Major
March 24, 2016

Introduction to business: distribution and pricing

CC-BY-SA

Ted Major

March 24, 2016
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  1. Distributing and pricing cc licensed ( BY NC SD )

    flickr photo by williamcho: http://flic.kr/p/6RNhKR
  2. Quiz • Closed book/closed notes • Put away phones until

    quiz is over • You may collaborate with your team • You are responsible for the answers on your quiz • You do not have to choose the same answers as your team
  3. Why not buy directly from manufacturer? CC licensed (BY-SA) wikipedia

    photo by Ryan Hildebrand https://commons.wikimedia.org/wiki/ File:2017_Lincoln_MKZ.jpg
  4. What value do intermediaries add? • match buyers & sellers

    (fewer transactions) • provide market information • promotion & sales support • gather assortment of goods • transport & store goods • assume risks • provide financing
  5. Supply chain management • Challenges? –Too much inventory? –Too little?

    • Electronic data interchange (EDI) • Vendor-managed inventory (VMI) • Bullwhip effect
  6. flickr photo by Swift Benjaminhttps://flic.kr/p/9Tf88T shared under a CC (BY)

    license Near beer game http://forio.com/simulate/mbean/near-beer-game/run/
  7. pricing strategy cc licensed ( BY NC ND ) flickr

    photo by Roadsidepictures: http://flic.kr/p/4hVtfA
  8. Pricing approaches • Penetration • EDLP • High/low • Loss-leader

    • Prestige • Skimming • Cost-based • Target costing • Demand-based • Odd
  9. Breakeven analysis = ( − ) Fixed cost: $5000 rent/mo

    $5000 payroll Price: $4 Variable cost: $1