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What is pricing?
Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product. Pricing is a fundamental aspect of financial modeling and is one of the four Ps of the marketing mix. Price is the only revenue generating element amongst the four Ps, the rest being cost centers Pricing strategy refers to method companies use to price their products or services.
Price: Cars do not cost the same price according to the different regions Toyota is implanted, as for example for a similar model there can be a huge difference of price like the Toyota Land Cruiser that costs 20 000 euros more in France than in the USA whereas it is the same product. The economic situation, Toyota adapts its price range to be closer to the consumers expectations
Toyota offers similar products to a specic region, but there are huge differences concerning the price. A good example lies between Ireland and Germany that are in the same region and where the Toyota Yaris is 3000 euros less expensive in Germany. This difference is not really understandable, as Germany is one of the most powerful countries in the European Union and the world, and consumers have one of the highest purchasing power. Ireland has recently known an economic crisis, and consumers do not have the same purchasing power as German people
concerning South Africa and it is even more signicant. The Toyota Yaris costs 7000 euros more than in Germany; most of South African could not even afford the German price, and Toyota is trying to reach a rich minority to purchase its cars.