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Sales & Brand Management · Module 5 of 10

Pricing and offers

Setting prices that sell and still earn profit.

📖 Key ideas

  1. Pricing approaches: cost-plus, competitor-based and value-based.
  2. Margin is profit as a share of the selling price; markup is profit as a share of cost.
  3. Discounts, bundles and limited-time offers can increase sales but can reduce margins.
  4. Psychological pricing, such as 499 instead of 500, can affect perception.
  5. Pricing must follow consumer protection rules: honest prices, no misleading offers.
💡 Real-life example: Like a tea stall: the price must cover milk, sugar and rent, match nearby stalls, and still feel worth it to customers.
Cost-plus pricingCost plus a fixed profit
Value-based pricingPrice based on value to the customer
MarginProfit as a share of selling price
BundleSeveral items sold together at one price