Pricing and Distribution

Chapter Objectives

The aims of this chapter are to assist the reader to:

• recognise the common error of both entrepreneurs and conventional small firms is to use ‘cost plus pricing’
• comprehend that successful pricing of an entrepreneurial product or service is determined by the nature of customer expectations
• understand there is a need to assess the cost implications associated with supplying goods when determining an optimal price
• accept that pricing decisions also have to recognise the influence of macro-environmental factors
• recognise an alternative to a price reduction is to offer a sales promotion
• understand new products face the hurdle of identifying intermediaries willing to link the supplier with the end user
• recognise that selection of distribution channels will be influenced by those pathways which can offer consumer satisfaction
• comprehend ...