Chapter 5 Pricing to Achieve Profit
DOI: 10.23912/978-1-908999-97-9-2513 | ISBN: 978-1-908999-97-9 |
Published: 30 June 2014 | Component type: chapter |
Published in: Essential Financial Techniques for Hospitality Managers 2edn | Parent DOI: 10.23912/978-1-908999-97-9-2479 |
Abstract
One of the most important techniques for managers to understand is how to price a product to attract customers – and also to achieve a profit (or at least cover all the costs). If you can be aware of all the different factors that influence a price (and not just what the customer is prepared to pay) then you will be able to generate both revenue and profit from your products and services.
Another helpful technique is to know how many you need to sell of a product or service at a given price to cover all the costs – this is called the ‘break-even point’.
By the end of this chapter you will be able to:
- Describe the factors that influence pricing decisions
- Identify the most appropriate pricing method for a product or service
- Calculate a price to achieve a profit
- Calculate how many products or services you need to sell to reach the break-even point.
Sample content
Contributors
- Dr Cathy Burgess, Oxford Brookes University (Author)
For the source title:
- Dr Cathy Burgess, Oxford Brookes University (Author)
Cite as
Burgess, 2014
Burgess, D.C. (2014) "Chapter 5 Pricing to Achieve Profit" In: Burgess, D.C. (ed) . Oxford: Goodfellow Publishers http://dx.doi.org/10.23912/978-1-908999-97-9-2513
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