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| | P4: Pricing Strategy as Part of Your Internet Marketing Plan |
 | | A low initial price discourages competitors from entering the market, and is the best approach when many segments of the market are price sensitive. |
 | | For example, a manufacturer may quote list price of $1000 less 30/10/5, meaning 30% off the list price to the retailer, an additional 10% off the $1000 to the wholesaler, and an additional 5% off the $1000 to the jobber. |
 | | Predatory pricing, that is, charging a very low price with the purpose of driving competitors out of business, is illegal in the US under the Sherman Act and the Federal Trade Commission Act, but is hard to prove. |
| www.wilsonweb.com /wmt5/plan-pricing.htm (2664 words) |
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