Going Rate Pricing

In going-rate pricing, the firm bases its price largely on competitors' prices. The firm might charge the same, more, or less than its major competitor(s) charges. In oligopolistic industries that sell a commodity such as steel, paper, or fertilizer, firms normally charge the same price. The smaller firms "follow the leader," changing their prices when the market leader's prices change rather than when their own demand or costs change. Some firms may charge a slight premium or slight discount, but they typically preserve the amount of difference. When costs are difficult to measure or competitive response is uncertain, firms feel that the going price represents a good solution, since it seems to reflect the industry's collective wisdom as to the price that will yield a fair return and not jeopardize industrial harmony.

Network Marketing Structure Part 2

Network Marketing Structure Part 2

Although this book is the second part of a 2 part series, the content here is designed to be stand-alone and each book is written with lessons applicable for every aspect in network marketing. In this book, we are taking a more in depth look at plan mechanics as well as practical steps to boost your career.

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