How Prices are Named

29-Jan-2023

HOW PRICES ARE NAMED

Pricing or Price is the key element in the traditional marketing mix (the 4Ps) and also the enhanced marketing mix (the 7 Ps). This is the element which earns revenue. This is highly critical because this is the strategy which can make or mar the business. The firms must make it both ways –the price must

(1) Get profits for the firm, and

(2) Give value to its customers.

For goods the price has a single name “Price”, but for services it has several names like:

·       Allowance          

·       Assessment      

·       Bribe                  

·       Brokerage

·       Commission      

·       Consideration   

·       Contribution      

·       Coupon Rate

·       Cut                      

·       Expenses          

·       Fare                    

·       Fees

·       Honorarium       

·       Interest              

·       Package            

·       Premium

·       Rate                   

·       Remuneration   

·       Rent                   

·       Retainer (Fee)

·       Salary                

·       Service Charge 

·       Subscription      

·       Tariff

·       Taxes                 

·       Ticket                 

·       Tip                      

·       Token

·       Toll                     

·       Tuition                

·       Wages               

·       Hair Cut

Pricing for goods is easy and straight forward, while for services it is complicated, may be controlled by several authorities, varies with time, place, people, etc.

[ Please visit my earlier Blog on 15-Jan-2022 on "Cost, Price & Value" here:

Himansu Sekhar's BLOG: January 2022 (hisema.blogspot.com) ]

 

GST Slabs

25-June-2022: GST Slabs

I have been thinking of the GST Slabs in our country for a while. Suddenly it occurred to me that why not go for a rationalised set of Slabs, instead of haphazardly chosen ones. Here are some suggestions: In the following Table, the suggested Rate/Slab is followed by a few examples.

• 2 % - For Insurance Products & Premiums

• 4 % - For Day-to-Day consumption & Essential Items for General Public

• 8 % - For Manufactured Items, 

• 16 % - For White Goods, and All Services

• 32 % - For Automobiles (Indian) & Highly Luxurious Goods

• 64 % - For Petroleum Products, Imported Cars

• 128 % - For Imported Luxury Cars

Note that: 

• These slabs are arranged in an exponential scale starting for the Minimum at 2% through the Maximum at 128%.

• There is a Rational & Logical place and Rate for Petroleum Products.

• While fitting the existing rates, the nearest Slab should be selected with logical reason