A pricing campaign, whether it involves temporary discounts, a new pricing model, or a product launch price, requires careful planning to achieve specific business goals without damaging brand perception or long-term profitability.
Posts tagged as “discounting”
In the history of economic theory, few conceptual figures have had as enduring an influence—or have attracted as much criticism—as Economic Man, or Homo Economicus.
Valuation is at the heart of many financial decisions. Whether you're buying or selling a company, assessing the worth of an investment, or determining whether a stock is under or overvalued, knowing how to properly value assets is crucial.
The Modified Internal Rate of Return (MIRR) is a capital budgeting tool that addresses some of the significant limitations of the traditional Internal Rate of Return (IRR) method.
The profitability index (PI), also known as the profit investment ratio (PIR) or value investment ratio (VIR), is a capital budgeting tool used to evaluate the attractiveness of a project or investment.
A Veblen good is a special type of luxury good for which the demand for the product increases as its price increases.
There are several different pricing strategies that can be used and these are broadly categorized into four different categories.
Internal Rate of Return (IRR) shows the actual percentage rate of return from the investment considering discounting.
Discounted Payback Period shows the time needed to earn enough profits to repay the original cost of the investment considering discounting.
Discounting is the process of bringing to the present value the future Net Cash flows that will occur during the lifetime of the project.
Compounding is the process of accumulating interest in an investment over time to earn more interest. Interest remains in the bank.
Average Rate of Return (ARR) gives the annual Net Cash Flows (or net profits) from a project as a percentage of the initial cost of the investment.
Payback Period (PBP) gives the length of time required for Net Cash Flows (or net profits) to pay back the initial capital cost of the investment.
Investment Appraisal assesses attractiveness of different capital projects. Projects usually involve a high expenditure and cannot be reversed.
Debt factoring is the process of a business selling its debt to a debt factoring company. The debt factoring company buys the unpaid invoice for cash.