The menu at the Barcelona airport read: café, 95€ (0,95 euro cents), with milk 1,15€. At the laundromat later that week in Madrid, washers and dryers carried the expected charge, but detergent was free. The connection of these things? They illustrate two common approaches to pricing.
How much to charge for goods and services is an issue for every business. Whether the product is food, books, software, or accounting services, owners face the need to decide on appropriate pricing. The issue here is not simply the basic charging enough to cover costs of goods sold so that gross profit covers SG&A and leaves an adequate return on the bottom line. The topic here is pricing as a sales tool in the psychological interplay between buyer and seller, and its relationship cost allocation.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access