The Five Cs Of Pricing Include All Of The Following Besides
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307 Contract Clauses
The contracting officer should consider using an economic worth adjustment clause primarily based on cost indexes of labor or materials under the circumstances and subject to approval as described in paragraphs and of this part. If all circumstances in paragraph of this part apply and the contracting officer determines that using the clause at fifty two.216-4 is inappropriate, the contracting officer could use an agency-prescribed clause instead of the clause at fifty two.216-four. Before entering into the contract, the contracting officer and contractor must agree in writing on the id of the usual supplies and the corresponding line items to which the clause applies. If all conditions 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 might use an agency-prescribed clause as an alternative of the clause at fifty two.216-3.
Pricing designed to have a constructive psychological impression. For example, there are sometimes benefits to selling a product at $3.ninety five or $three.ninety nine, somewhat than $four.00. If the value of a product is $100 and the corporate costs it at $99, then it’s utilizing the psychological strategy of just-beneath pricing. In most customers’ minds, $ninety nine gives the look of being significantly lower than $one hundred. A minor distinction in pricing could make an enormous difference in gross sales. The company that succeeds to find applicable psychological value points can enhance sales and maximize income.