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Pricing




All products and all services have prices. The price depends on different things such as credit terms, delivery, trade-inallowance, guarantees, quality and other forms of service, which price can produce the biggest profit during a long period of time. It's hardly possible to determine such a price. The price may be too high to produce a large volume or too low to cover costs. No other area of marketing operation has been a subject to bad practice. Many businesses pursue unsound price politics for long periods of time and are not aware about it.

Prices can be determined in different ways. For example, the prices of meat, cotton and other agricultural prices can be decided in a large central market where forces of supply and demand exist. This is pure price competition. The prices on industrial products (iron, steel, etc.) are usually decided by large companies. As a rule the amount and price of goods sold to large number of buyers is controlled by a few competing sellers. Prices also can be set by the government, usually for different public services Ц railroads, electricity, manufactured gas, bus services, etc.

If demand increases, prices rise, profits expand and new investment is attracted. But other factors may be involved as well. Prices are related to each other in different ways. Ultimately, everything is related in price: since the consumer can buy and must pay for everything out of a particular, limited amount of money.

 

Say if the statements are true or false. Correct the false variant.

1. All products and all services have prices. 2. The price depends only on credit terms. 3. It is easy to determine any price. 4. The price may be too high to produce a large volume or too low to cover costs. 5. Many businesses pursue unsound price politics for long periods of time and are not aware about it. 6. The prices of meat, cotton and other agricultural prices can be decided in a large central market. 7. The prices on industrial products are usually charged by the government. 8. If demand increases, prices rise, profits expand. 9. Prices are not related to each other. 10. Consumers can buy and pay for everything. T/F T/F T/F T/F   T/F   T/F   T/F   T/F T/F T/F

Match English and Russian pairs of words.

1 demand 2 supply 3 as a rule 4 credit terms 5 ultimately 6 to cover costs 7 to pursue unsound price 8 trade inallowance   a в конце концов b следовать политике необоснованных цен c отсутствие скидки розничным торговцам d покрывать издержки e как правило f предложение g спрос h кредитные услови€

 





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