The Five Cs Of Pricing Embrace All Of The Following Besides
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The contracting officer ought to think about using an financial value adjustment clause primarily based on value indexes of labor or material beneath the circumstances and subject to approval as described in paragraphs and of this part. If all conditions in paragraph of this section apply and the contracting officer determines that using the clause at fifty two.216-four is inappropriate, the contracting officer may use an agency-prescribed clause instead of the clause at fifty two.216-four. Before coming into into the contract, the contracting officer and contractor should agree in writing on the identity of the standard supplies and the corresponding line items to which the clause applies. If all circumstances in paragraph of this subsection apply and the contracting officer determines that the usage of the clause at 52.216-three is inappropriate, the contracting officer could use an company-prescribed clause as an alternative of the clause at fifty two.216-three.
Pricing designed to have a optimistic psychological influence. For example, there are often benefits to selling a product at $3.95 or $3.99, rather than $four.00. If the value of a product is $100 and the corporate prices it at $ninety nine, then it is using the psychological strategy of just-under pricing. In most consumers’ minds, $ninety nine gives the impression of being considerably lower than $one hundred. A minor distinction in pricing can make a giant distinction in gross sales. The firm that succeeds find applicable psychological value points can enhance sales and maximize income.