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What is maximum acceptable price?
Maximum acceptable price:
This approach is mainly helpful for setting the price of industrial products that core benefits to the buyer is a cost reduction. To estimate what the customer is prepared to pay the process followed is to know and evaluate the various satisfactions or services given by the product as well as all the costs that other than price, it shows. The highest price which the customers will be willing to pay to the product is specified by
Benefits – Costs other than Price = MAP (Maximum Acceptable Price)
Factors influencing pricing decisions
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