Pricing Tactics | Boundless Marketing - Lumen Learning

Pricing Tactics · Discounting · Value-Based Pricing · Geographic Pricing · Transfer Pricing · Consumer Penalties. Skiptomaincontent BoundlessMarketing Pricing Searchfor: PricingTactics Discounting Discountsandallowancesarereductionstoabasicpriceofgoodsorservicesandcanoccuranywhereinthedistributionchannel. LearningObjectives Analyzetheuseandtypesofdiscountsaspartofpricingtactics KeyTakeaways KeyPoints Seasonaldiscountsarepricereductionsgivenforout-of-seasonmerchandise. Cashdiscountsarereductionsonbasepricegiventocustomersforpayingcashorwithinsomeshorttimeperiod. Seniordiscountsarediscountsofferedtocustomerswhoareaboveacertainage,typicallyaroundnumbersuchas50,55,60,65,70,and75. Educationalorstudentdiscountsarepricereductionsgiventomembersofeducationalinstitutions,usuallystudentsbutpossiblyalsotoeducatorsandtootherinstitutionstaff. Quantitydiscountsarereductionsinbasepricegivenastheresultofabuyerpurchasingsomepredeterminedquantityofmerchandise.Anoncumulativequantitydiscountappliestoeachpurchaseandisintendedtoencouragebuyerstomakelargerpurchases. KeyTerms ListPrice:Themanufacturer’ssuggestedretailprice(MSRP),listpriceorrecommendedretailprice(RRP)ofaproductisthepricewhichthemanufacturerrecommendsthattheretailerselltheproduct. quantitydiscount:pricereductionsgivenforlargepurchases functionaldiscount:paymentstodistributionchannelmembersforperformingsomeservice Discountsandallowancesarereductionstoabasicpriceofgoodsorservices.Therearemanydifferenttypesofpricereduction,eachdesignedtoaccomplishaspecificpurpose.Theycanoccuranywhereinthedistributionchannel,modifyingeitherthemanufacturer’slistprice(determinedbythemanufacturerandoftenprintedonthepackage),theretailprice(setbytheretailerandoftenattachedtotheproductwithasticker),orthelistprice(whichisquotedtoapotentialbuyer,usuallyinwrittenform). Quantitydiscountsarereductionsinbasepricegivenastheresultofabuyerpurchasingsomepredeterminedquantityofmerchandise.Anoncumulativequantitydiscountappliestoeachpurchaseandisintendedtoencouragebuyerstomakelargerpurchases.Thismeansthatthebuyerholdstheexcessmerchandiseuntilitisused,possiblycuttingtheinventorycostofthesellerandpreventingthebuyerfromswitchingtoacompetitoratleastuntilthestockisused.Acumulativequantitydiscountappliestothetotalboughtoveraperiodoftime.Thebuyeraddstothepotentialdiscountwitheachadditionalpurchase.Suchapolicyhelpstobuildrepeatpurchases.Buildingmaterialdealers,forexample,findsuchapolicyquiteusefulinencouragingbuilderstoconcentratetheirpurchasewithonedealerandtocontinuewiththesamedealerovertime. Seasonaldiscountsarepricereductionsgivenforout-of-seasonmerchandise.Anexamplewouldbeadiscountonsnowmobilesduringthesummer.Theintentionofsuchdiscountsistospreaddemandovertheyear.Thiscanallowfulleruseofproductionfacilitiesandimprovedcashflowduringtheyear.Electricpowercompaniesusethelogicofseasonaldiscountstoencouragecustomerstoshiftconsumptiontooff-peakperiods.Sincethesecompaniesmusthaveproductioncapacitytomeetpeakdemands,theloweringofthepeakcanlessenthegeneratingcapacityrequired. Cashdiscountsarereductionsonbasepricegiventocustomersforpayingcashorwithinsomeshorttimeperiod.Forexample,a2%discountonbillspaidwithin10daysisacashdiscount.Thepurposeisgenerallytoacceleratethecashflowoftheorganization. Tradediscounts,alsocalledfunctionaldiscounts,arepaymentstodistributionchannelmembersforperformingsomefunction.Examplesofthesefunctionsarewarehousingandshelfstocking.Tradediscountsareoftencombinedtoincludeaseriesoffunctions,forexample20/12/5couldindicatea20%discountforwarehousingtheproduct,anadditional12%discountforshippingtheproduct,andanadditional5%discountforkeepingtheshelvesstocked.Tradediscountsaremostfrequentinindustrieswhereretailersholdthemajorityofthepowerinthedistributionchannel(referredtoaschannelcaptains).Tradediscountsaregiventotrytoincreasethevolumeofsalesbeingmadebythesupplier. Discounts:Discounts,suchas75%off,areusedtodrawcustomerstopurchaseitems. Educationalorstudentdiscountsarepricereductionsgiventomembersofeducationalinstitutions,usuallystudentsbutpossiblyalsotoeducatorsandtootherinstitutionstaff.Theprovider’spurposeistobuildbrandawarenessearlyinabuyer’slife,orbuildproductfamiliaritysothataftergraduationtheholderislikelytobuythesameproduct,forownuseorforanemployer,atitsnormalprice.Educationaldiscountsmaybegivenbymerchantsdirectly,orviaastudentdiscountprogram,suchasCollegeBudgetintheUnitedStatesorNUSandStudentdiscounts.co.ukintheUnitedKingdom. Seniordiscountsarediscountsofferedtocustomerswhoareaboveacertainrelativelyadvancedage,typicallyaroundnumbersuchas50,55,60,65,70,and75;theexactagevariesindifferentcases.Therationaleforaseniordiscountofferedbycompaniesisthatthecustomerisassumedtoberetiredandlivingonalimitedincome,andunlikelytobewillingtopayfullprice;salesatreducedpricearebetterthannosales.Non-commercialorganizationsmayofferconcessionarypricesasamatterofsocialpolicy. Value-BasedPricing Value-basedpricingseekstosetpricesprimarilyonthevalueperceivedbycustomersratherthanonthecostoftheproductorhistoricalprices. LearningObjectives Examinetherationalebehindvaluebasedpricingasapricingtactic KeyTakeaways KeyPoints Value-basedpricingismostsuccessfulwhenproductsaresoldbasedonemotions(fashion),innichemarkets,inshortages(e.g.,drinksatopenairfestivalatahotsummerday),orforindispensableadd-ons(e.g.,printercartridges,headsetsforcellphones). Althoughitwouldbenicetoassumethatabusinesshasthefreedomtosetanypriceitchooses,thisisnotalwaysthecase.Firmsarelimitedbyconstraintssuchasgovernmentrestrictions. Value-basedpricingispredicateduponanunderstandingofcustomervalue.Inmanysettings,gainingthisunderstandingrequiresprimaryresearchthroughinterviewswithcustomersandvarioussurveys.Theresultsofsuchsurveysoftendepictacustomer’swillingnesstopay. KeyTerms willingnesstopay:Thewillingnesstopay(WTP)isthemaximumamountapersonwouldbewillingtopay,sacrifice,orexchangeinordertoreceiveagoodortoavoidsomethingundesired,suchaspollution. consumerbuyingprocess:Thereare5stagesofaconsumerbuyingprocess.Theyare:Theproblemrecognitionstage,thesearchforinformation,thepossibilityofalternativeoptions,thechoicetopurchasetheproduct,andthenfinallytheactualpurchaseoftheproduct.Thisshowsthecompleteprocessthataconsumerwillmostlikely,whetherrecognizablyornot,gothroughwhentheygotobuyaproduct. Value-basedpricingsetspricesprimarily,butnotexclusively,onthevalue,perceivedorestimated,tothecustomerratherthanonthecostoftheproductorhistoricalprices.Thisstrategyfocusesentirelyonthecustomerasadeterminantofthetotalprice/valuepackage.Marketerswhoemployvalue-basedpricingmightusethefollowingdefinition:“Itiswhatyouthinkyourproductisworthtothatcustomeratthattime.”Thisimageshowstheprocessforvaluebasedpricing. Value-BasedPricing:Value-basedpricingfocusesentirelyonthecustomerasadeterminantofthetotalpriceorvaluepackage. Goodsthatareveryintenselytraded(e.g.,oilandothercommodities)orthataresoldtohighlysophisticatedcustomersinlargemarkets(e.g.,automotiveindustry)usuallyaresoldbasedoncost-basedpricing.Value-basedpricingismostsuccessfulwhenproductsaresoldbasedonemotions(fashion),innichemarkets,inshortages(e.g.,drinksatopenairfestivalatahotsummerday)orforindispensableadd-ons(e.g.,printercartridges,headsetsforcellphones). Manycustomer-relatedfactorsareimportantinvalue-basedpricing.Forexample,itiscriticaltounderstandtheconsumerbuyingprocess.Howimportantisprice?Whenisitconsidered?Howisitused?Anotherfactoristhecostofswitching.Haveyoueverwatchedthetelevisionprogram,”ThePriceisRight”?Ifyouhave,youknowthatmostconsumershavepoorpriceknowledge.Moreover,theirknowledgeofcomparablepriceswithinaproductcategory(e.g.,ketchupistypicallyworse).Sopriceknowledgeisarelevantfactor.Finally,themarketermustassessthecustomers’priceexpectations.Howmuchdoyouexpecttopayforalargepizza?ColorTV?DVD?Newspaper?Swimmingpool?Theseexpectationscreateaphenomenoncalled“stickershock”asexhibitedbygasoline,automobiles,andATMfees. Value-basedpricingispredicateduponanunderstandingofcustomervalue.Inmanysettings,gainingthisunderstandingrequiresprimaryresearch.Thismayincludeevaluationofcustomeroperationsandinterviewswithcustomerpersonnel.Surveymethodsaresometimesusedtodeterminevalueacustomerattributestoaproductoraservice.Theresultsofsuchsurveysoftendepictacustomer’swillingnesstopay.Theprincipaldifficultyisthatthewillingnessofthecustomertopayacertainpricediffersbetweencustomers,betweencountries,evenforthesamecustomerindifferentsettings(dependingonhisactualandpresentneeds),sothatatruevalue-basedpricingatalltimesisimpossible.Also,extremefocusonvalue-basedpricingmightleavecustomerswithafeelingofbeingexploitedwhichisnothelpfulforthecompaniesinthelongrun. Althoughitwouldbenicetoassumethatabusinesshasthefreedomtosetanypriceitchooses,thisisnotalwaysthecase.Thereareavarietyofconstraintsthatprohibitsuchfreedom.Someconstraintsareformal,suchasgovernmentrestrictionsinrespecttostrategieslikecollusionandprice-fixing.Thisoccurswhentwoormorecompaniesagreetochargethesameorverysimilarprices.Otherconstraintstendtobeinformal.Examplesincludematchingthepriceofcompetitors,atraditionalpricechargedforaparticularproduct,andchargingapricethatcoversexpectedcosts. GeographicPricing Geographicalpricingisthepracticeofmodifyingabasiclistpricebasedonthelocationofthebuyertoreflectshippingcosts. LearningObjectives Describethedifferenttypesofgeographicpricingfromapricingtacticperspective KeyTakeaways KeyPoints Zonepricingisapricingtacticwherepricesincreaseasshippingdistancesincrease.Thisissometimesdonebydrawingconcentriccirclesonamapwiththeplantorwarehouseatthecenterandeachcircledefiningtheboundaryofapricezone. FOBorigin(FreeonBoardorigin)isapricingtacticwheretheshippingcostfromthefactoryorwarehouseispaidbythepurchaser.Ownershipofthegoodsistransferredtothebuyerassoonasitleavesthepointoforigin. Freight-absorptionpricingiswherethesellerabsorbsallorpartofthecostoftransportation.Thisamountstoapricediscountandisusedasapromotionaltactic. KeyTerms listprice:Theretailsellingpriceofanitem,asrecommendedbythemanufacturerorretaildistributor,oraslistedinacatalog. zonepricing:Thepracticeofmodifyingabasiclistpricebasedonthegeographicallocationofthebuyer. Geographicalpricingisthepracticeofmodifyingabasiclistpricebasedonthegeographicallocationofthebuyer.Itisintendedtoreflectthecostsofshippingtodifferentlocations.Thereareseveraltypesofgeographicpricing: FOBorigin(FreeonBoardorigin):Theshippingcostfromthefactoryorwarehouseispaidbythepurchaser.Ownershipofthegoodsistransferredtothebuyerassoonasitleavesthepointoforigin.Itcanbeeitherthebuyerorsellerthatarrangesforthetransportation. FOB:FOBisusedforseafreight.Thepurchaserisresponsiblefortheshippingcosts. Uniformdeliverypricing(alsocalledpostagestamppricing):Thesamepriceischargedtoall. Zonepricing:Pricesincreaseasshippingdistancesincrease.Thisissometimesdonebydrawingconcentriccirclesonamapwiththeplantorwarehouseatthecenterandeachcircledefiningtheboundaryofapricezone.Insteadofusingcircles,irregularlyshapedpriceboundariescanbedrawnthatreflectgeography,populationdensity,transportationinfrastructure,andshippingcost.(Theterm“zonepricing”canalsorefertothepracticeofsettingpricesthatreflectlocalcompetitiveconditions(i.e.,themarketforcesofsupplyanddemand,ratherthanactualcostoftransportation).Zonepricing,aspracticedinthegasolineindustryintheUnitedStates,isthepricingofgasolinebasedonacomplexandsecretweightingoffactors,suchasthenumberofcompetingstations,numberofvehicles,averagetrafficflow,populationdensity,andgeographiccharacteristics.Thiscanresultintwobrandedgasstationsonlyafewmilesapartsellinggasolineatapricedifferentialofasmuchas$0.50pergallon.Manybusinesspeopleandeconomistsstatethatgasolinezonepricingmerelyreflectsthecostsofdoingbusinessinacomplexandvolatilemarketplace.Criticscontendthatindustrymonopolyandtheabilitytocontrolnotonlyindustry-owned“corporate”stations,butlocallyownedorfranchisestations,makezonepricingintoanexcusetoraisegasolinepricesvirtuallyatwill.Oilindustryrepresentativescontendthatwhiletheysetwholesaleanddealertankwagonprices,individualdealersarefreetoseewhateverpricestheywishandthatthispracticeinitselfcauseswidespreadpricevariationsoutsideindustrycontrol.Zonepricingisalsousedtopricefaresincertainmetrostations. Basingpointpricing:Certaincitiesaredesignatedasbasingpoints.Allgoodsshippedfromagivenbasispointarechargedthesameamount. Freight-absorptionpricing:Thesellerabsorbsallorpartofthecostoftransportation.Thisamountstoapricediscountandisusedasapromotionaltactic. TransferPricing Transferpricingdescribesallaspectsofintracompanypricingarrangementsbetweenbusinessentitiesforgoodsandservices. LearningObjectives Outlinetheconceptandrationaleoftransferpricingasapricingtactic KeyTakeaways KeyPoints Transferpricingreferstothesetting,analysis,documentation,andadjustmentofchargesofgoodsandserviceswithinamulti-divisionalorganization,particularlyinregardtocross-bordertransactions. Intra-companytransactionsacrossbordersaregrowingrapidlyandarebecomingmuchmorecomplex.Compliancewiththedifferingrequirementsofmultipleoverlappingtaxjurisdictionsisacomplicatedandtime-consumingtask. Divisionmanagersareprovidedincentivestomaximizetheirowndivision’sprofits.Thefirmmustsettheoptimaltransferpricestomaximizecompanyprofitsoreachdivisionwilltrytomaximizetheirownprofitsleadingtoloweroverallprofitsforthefirm. KeyTerms marginalrevenue:Marginalrevenueistheadditionalrevenuethatwillbegeneratedbyincreasingproductsalesbyoneunit. marginalcost:Marginalcostisthechangeintotalcostthatariseswhenthequantityproducedchangesbyoneunit.Thatis,itisthecostofproducingonemoreunitofagood. Transferpricingreferstothesetting,analysis,documentation,andadjustmentofchargesofgoodsandserviceswithinamulti-divisionalorganization,particularlyinregardtocross-bordertransactions.Transferpricingdescribesallaspectsofintracompanypricingarrangementsbetweenrelatedbusinessentities,includingtransfersofintellectualproperty,transfersoftangiblegoods,servicesandloans,andotherfinancingtransactions. Forexample,goodsfromtheproductiondivisionmaybesoldtothemarketingdivision,orgoodsfromaparentcompanymaybesoldtoaforeignsubsidiary,withthechoiceofthetransferpriceaffectingthedivisionofthetotalprofitamongthepartsofthecompany.Thishasledtotheriseoftransferpricingregulationsasgovernmentsseektostemtheflowoftaxationrevenueoverseas,makingtheissueoneofgreatimportanceformultinationalcorporations. Intra-companytransactionsacrossbordersaregrowingrapidlyandarebecomingmuchmorecomplex.Compliancewiththedifferingrequirementsofmultipleoverlappingtaxjurisdictionsisacomplicatedandtime-consumingtask.Atthesametime,taxauthoritiesfromeachcountryareimposingstricterpenalties,newdocumentationrequirements,increasedinformationexchangeandincreasedaudit/inspectionactivity. Divisionmanagersareprovidedincentivestomaximizetheirowndivision’sprofits.Thefirmmustsettheoptimaltransferpricestomaximizecompanyprofits,oreachdivisionwilltrytomaximizetheirownprofitsleadingtoloweroverallprofitsforthefirm.Doublemarginalizationiswhenbothdivisionsmarkuppricesinexcessofmarginalcostandoverallfirmprofitsarenotoptimal. Onecanusemarginalpricedeterminationtheorytoanalyzeoptimaltransferpricing,withoptimalbeingdefinedastransferpricingthatmaximizesoverallfirmprofitsinanon-realisticworldwithnotaxes,nocapitalrisk,nodevelopmentrisk,noexternalities,oranyotherfrictionswhichexistintherealworld.Frommarginalpricedeterminationtheory,theoptimumlevelofoutputisthatwheremarginalcostequalsmarginalrevenue.Thatistosay,afirmshouldexpanditsoutputaslongasthemarginalrevenuefromadditionalsalesisgreaterthantheirmarginalcosts.Inthediagramthatfollows,thisintersectionisrepresentedbypointA,whichwillyieldapriceofP*,giventhedemandatpointB. OptimalTransferPricingDiagram:Frommarginalpricedeterminationtheory,theoptimumlevelofoutputiswheremarginalcostequalsmarginalrevenue. Whenafirmissellingsomeofitsproducttoitself,andonlytoitself(i.e.,thereisnoexternalmarketforthatparticulartransfergood),thenthepicturegetsmorecomplicated,buttheoutcomeremainsthesame.Thedemandcurveremainsthesame.Theoptimumpriceandquantityremainthesame.Butmarginalcostofproductioncanbeseparatedfromthefirm’stotalmarginalcosts.Likewise,themarginalrevenueassociatedwiththeproductiondivisioncanbeseparatedfromthemarginalrevenueforthetotalfirm.ThisisreferredtoastheNetMarginalRevenueinproduction(NMR)andiscalculatedasthemarginalrevenuefromthefirmminusthemarginalcostsofdistribution. Itcanbeshownalgebraicallythattheintersectionofthefirm’smarginalcostcurveandmarginalrevenuecurve(pointA)mustoccuratthesamequantityastheintersectionoftheproductiondivision’smarginalcostcurvewiththenetmarginalrevenuefromproduction(pointC). ConsumerPenalties Penalties,intheformoffeesandrestricteduseraccess,existforconsumerswhoviolatetermsincontracts. LearningObjectives Reviewtherationaleanduseofconsumerpenaltiesaspartofpricingtactics KeyTakeaways KeyPoints Mostorganizationsreservetherighttorestrictauser’saccesstotheserviceiftheyviolatethetermsintheagreement. Otherformsofpenaltiescanexistasfees.Anearly-terminationfeeischargedbyacompanywhenacustomerwantsorneedstobereleasedfromacontractbeforeitexpires. Earlypaymentpenaltiesandfeesalsoexistwhenpeoplepayoffaloanearlierthanexpected,makingafirmloseoutoninterestfees.Thefeestypicallynegatethisadvantageatleastinpart. KeyTerms surcharge:Anadditionofextrachargeontheagreedorstatedprice. ConsumerPenalties Penalties,intheformoffeesandrestricteduseraccess,existforconsumerswhoviolatetermsincontracts.Termsofserviceareruleswhichonemustagreetoabidebyinordertouseaservice. Certainwebsitesarenotedforhavingcarefullydesignedtermsofservice,particularlyeBayandPayPal,whichneedtomaintainahighlevelofcommunitytrustbecauseoftransactionsinvolvingmoney.Termsofservicecancoverarangeofissues,includingacceptableuserbehavioronline,acompany’smarketingpolicies,andcopyrightnotices.Someorganizations,suchasYahoo!,canchangetheirtermsofservicewithoutnoticetotheusers. Mostorganizationsreservetherighttorestrictauser’saccesstotheserviceiftheyviolatethetermsintheagreement.Inseriouscases,theusermayhavehisorheraccountterminated.Inextremecases,thecompanymaypursuelegalaction. MobilePhones:Mobilephoneserviceprovidersoftenchargeanearlyterminationfeeontheirservice,whichisaformofconsumerpenalty. 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CClicensedcontent,SharedpreviouslyCurationandRevision.Providedby:Boundless.com.License:CCBY-SA:Attribution-ShareAlikeCClicensedcontent,SpecificattributionFunctionaldiscount.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/Functional_discount%23Functional_discount.License:CCBY-SA:Attribution-ShareAlikeIntroducingMarketingbyJohnBurnett.Providedby:GlobalTextProject.Locatedat:https://dl.dropboxusercontent.com/u/31779972/Introducing%20Marketing.pdf.License:CCBY:AttributionDiscountsandallowances.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/Discounts_and_allowances.License:CCBY-SA:Attribution-ShareAlikeListPrice.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/List%20Price.License:CCBY-SA:Attribution-ShareAlikeEven75%offdoesnotbringinthecrowds.Providedby:Wikimedia.Locatedat:http://commons.wikimedia.org/wiki/File:Even_75%25_off_does_not_bring_in_the_crowds.jpg.License:CCBY:AttributionIntroducingMarketingbyJohnBurnett.Providedby:GlobalTextProject.Locatedat:https://dl.dropboxusercontent.com/u/31779972/Introducing%20Marketing.pdf.License:CCBY:AttributionValue-basedpricing.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/Value-based_pricing.License:CCBY-SA:Attribution-ShareAlikewillingnesstopay.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/willingness%20to%20pay.License:CCBY-SA:Attribution-ShareAlikeconsumerbuyingprocess.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/consumer%20buying%20process.License:CCBY-SA:Attribution-ShareAlikeEven75%offdoesnotbringinthecrowds.Providedby:Wikimedia.Locatedat:http://commons.wikimedia.org/wiki/File:Even_75%25_off_does_not_bring_in_the_crowds.jpg.License:CCBY:AttributionFigure2ValueBasedPricing.Providedby:Wikimedia.Locatedat:http://commons.wikimedia.org/wiki/File:Figure_2_Value_Based_Pricing.jpg.License:CCBY-SA:Attribution-ShareAlikelistprice.Providedby:Wiktionary.Locatedat:https://en.wiktionary.org/wiki/list_price.License:CCBY-SA:Attribution-ShareAlikeGeographicalpricing.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/Geographical_pricing.License:CCBY-SA:Attribution-ShareAlikeZonepricing.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/Zone_pricing.License:CCBY-SA:Attribution-ShareAlikeListPrice.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/List%20Price.License:CCBY-SA:Attribution-ShareAlikeEven75%offdoesnotbringinthecrowds.Providedby:Wikimedia.Locatedat:http://commons.wikimedia.org/wiki/File:Even_75%25_off_does_not_bring_in_the_crowds.jpg.License:CCBY:AttributionFigure2ValueBasedPricing.Providedby:Wikimedia.Locatedat:http://commons.wikimedia.org/wiki/File:Figure_2_Value_Based_Pricing.jpg.License:CCBY-SA:Attribution-ShareAlikeContainer_ship_loading-700px.jpg.Providedby:Wikipedia.Locatedat:https://en.wikipedia.org/wiki/FOB_(shipping)#/media/File:Container_ship_loading-700px.jpg.License:CCBY-SA:Attribution-ShareAliketransferpricing.Providedby:mbaeconWikispace.Locatedat:http://mbaecon.wikispaces.com/transfer+pricing.License:CCBY-SA:Attribution-ShareAlikeTransferpricing.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/Transfer_pricing.License:CCBY-SA:Attribution-ShareAlikemarginalrevenue.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/marginal%20revenue.License:CCBY-SA:Attribution-ShareAlikemarginalcost.Providedby:Wiktionary.Locatedat:http://en.wiktionary.org/wiki/marginal_cost.License:CCBY-SA:Attribution-ShareAlikeEven75%offdoesnotbringinthecrowds.Providedby:Wikimedia.Locatedat:http://commons.wikimedia.org/wiki/File:Even_75%25_off_does_not_bring_in_the_crowds.jpg.License:CCBY:AttributionFigure2ValueBasedPricing.Providedby:Wikimedia.Locatedat:http://commons.wikimedia.org/wiki/File:Figure_2_Value_Based_Pricing.jpg.License:CCBY-SA:Attribution-ShareAlikeContainer_ship_loading-700px.jpg.Providedby:Wikipedia.Locatedat:https://en.wikipedia.org/wiki/FOB_(shipping)#/media/File:Container_ship_loading-700px.jpg.License:CCBY-SA:Attribution-ShareAlikePricetrans-noext-small.Providedby:Wikimedia.Locatedat:http://commons.wikimedia.org/wiki/File:Price_trans-no_ext-small.jpg.License:CCBY-SA:Attribution-ShareAlikeFee.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/Fee.License:CCBY-SA:Attribution-ShareAlikeTermsofservice.Providedby:Wikipedia.Locatedat:http://en.wikipedia.org/wiki/Terms_of_service.License:CCBY-SA:Attribution-ShareAlikesurcharge.Providedby:Wiktionary.Locatedat:http://en.wiktionary.org/wiki/surcharge.License:CCBY-SA:Attribution-ShareAlikeEven75%offdoesnotbringinthecrowds.Providedby:Wikimedia.Locatedat:http://commons.wikimedia.org/wiki/File:Even_75%25_off_does_not_bring_in_the_crowds.jpg.License:CCBY:AttributionFigure2ValueBasedPricing.Providedby:Wikimedia.Locatedat:http://commons.wikimedia.org/wiki/File:Figure_2_Value_Based_Pricing.jpg.License:CCBY-SA:Attribution-ShareAlikeContainer_ship_loading-700px.jpg.Providedby:Wikipedia.Locatedat:https://en.wikipedia.org/wiki/FOB_(shipping)#/media/File:Container_ship_loading-700px.jpg.License:CCBY-SA:Attribution-ShareAlikePricetrans-noext-small.Providedby:Wikimedia.Locatedat:http://commons.wikimedia.org/wiki/File:Price_trans-no_ext-small.jpg.License:CCBY-SA:Attribution-ShareAlikeProvidedby:Fotopedia.Locatedat:http://www.fotopedia.com/items/flickr-267108001.License:CCBY:Attribution 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