Your assignment is to construct one or more pages that show the prices you will discuss with your buyer for the product you chose last week as your project product or service.
This page—or pages—will serve as a visual aid (some examples are within the appendix starting on page 231) that you show and discuss with your buyer during the business proposition phase of your sales presentation.
Remember to use references when applicable, and submit your final pricing visual aid below.
Although a firm may engage in many pricing practices, all companies have a list price, net price, and prices based on transportation terms. Five of the most common types of prices are ■ List price—the standard price charged to customers. ■ Net price—the price after allowance for all discounts. ■ Zone price—the price based on geographic location or zone of customers. ■ FOB shipping point—FOB (free on board) means the buyer pays transporta- tion charges on the goods—the title to goods passes to the customer when they are loaded on shipping vehicles. ■ FOB destination—the seller pays all shipping costs. These prices are established by the company. Normally, the salesperson is not involved in pricing the product. This type of pricing allows the salesperson to quote prices according to company guidelines