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Business Planning and Entrepreneurship by Michael Kraten

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Chapter 13

Price-Discounting Strategies

About This Chapter

Chapter 13 concludes our review of the revenue estimation section by explaining how organizations should establish the scope, and the limits, of their price-discounting strategies. Although most organizations prefer to avoid situations where discounting is necessary, entrepreneurs must be prepared to consider such strategies if aggressive competition makes it necessary to implement them.

Thus, in this chapter, we explore how prices should be established under conditions of severe external market threats. As we originally established with our discussion of variable and fixed costs in chapter 11, considerations of cost behavior greatly impact how deeply prices can be slashed under such ...

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