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Price (What can price do? (Positioning (perception of quality), Gain…

- - - - Fixed cost (do not vary with quantity produce or sold) i.e: rent,...
      - Variable cost (vary directly with the level of production) i.e: raw materials
      - Total costs = Fixed cost + Variable cost
      - Unit costs= Variable cost + Fixed costs/ unit sold
      - Cost- plus pricing: Sell price = Unit cost + Mark- up
      - Break- even analysis: the point where total revenue and total costs intersect
        Break- even volume ( quantity of products that a company need to produce and sell in order to cover the total cost) = Fixed Cost/ (Unit sell price - Unit variable cost)
  - - - Factors that affect price sensitivity
        
        Luxury or necessity
        
        Available of substitutes
        
        Perceived quality, prestige, exclusiveness of the product
        
        Expenditure of the products vs income
        
        Competitor's cost
        
        Complementary products
  - - - Reduce price
      - Raise perceived quality
      - Improve quality and increase price
      - Launch low price fighting brand (i.e: jet star is a cheap airlines that owned by quantas)