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Session 24

INITIATING
THE PRICE
INCREASES

 Initiating price changes:


 Circumstances under which price can be


raised:
► When introduced some differentiation
in the offering.
► When costs of doing business may have
gone up.
► Excess demand and perception of
quality.
► If a company’s objective may have
become to harvest the business i.e. To
increase margins at the cost of
survival.
► Customers will take the price charged
by the major and majority of
companies as reasonable and will
attribute the low prices of the few

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