abhishreshthaa
Abhijeet S
Pricing Policy:-
The pricing policy of the company depends on the following factors:-
1. Quality of raw materials – The price of the shoe varies as per the quality of the raw materials used in the manufacturing of the shoe.
E.g. the price varies as the material used in the making of the sole varies i.e. either leather or rubber, as the rubber sole is not even 1/10th of the price of the leather sole.
2. The output of the product – The price of the shoe also depends on the quantity of product as the fixed cost goes on diminishing with increase in output.
E.g. as the output for shoes with rubber soles is more as compared to the leather soled shoes, the price of the rubber sole shoes is cheaper than the leather ones.
3. Time utilized for manufacturing - The pricing of the shoe not only depends upon the cost of the raw materials, labor and other expenses but also on the time utilized in manufacturing the shoe.
E.g. if the company manufacturers 1000 pairs of shoes with rubber soles and 500 pairs of shoes with leather soles in a day, then the price of the shoes with rubber soles will be cheaper compared to the shoes with the leather soles.
The pricing policy of the company depends on the following factors:-
1. Quality of raw materials – The price of the shoe varies as per the quality of the raw materials used in the manufacturing of the shoe.
E.g. the price varies as the material used in the making of the sole varies i.e. either leather or rubber, as the rubber sole is not even 1/10th of the price of the leather sole.
2. The output of the product – The price of the shoe also depends on the quantity of product as the fixed cost goes on diminishing with increase in output.
E.g. as the output for shoes with rubber soles is more as compared to the leather soled shoes, the price of the rubber sole shoes is cheaper than the leather ones.
3. Time utilized for manufacturing - The pricing of the shoe not only depends upon the cost of the raw materials, labor and other expenses but also on the time utilized in manufacturing the shoe.
E.g. if the company manufacturers 1000 pairs of shoes with rubber soles and 500 pairs of shoes with leather soles in a day, then the price of the shoes with rubber soles will be cheaper compared to the shoes with the leather soles.