Which of the following pricing strategies is used by wholesalers of industrial goods?
Penetration pricing
Cost-plus pricing
Demand based pricing
Haggling pricing
Correct answer is B
The pricing strategy commonly used by wholesalers of industrial goods is cost-plus pricing. Cost-plus pricing involves determining the selling price of a product by adding a markup percentage to the cost of production or acquisition. In the case of wholesalers, they typically purchase goods in bulk from manufacturers or suppliers and then resell them to retailers or other businesses. To establish the selling price, wholesalers consider the cost of acquiring the goods, including transportation, storage, and any additional costs incurred, and add a markup percentage to cover their desired profit margin. Cost-plus pricing is a straightforward and commonly used method for wholesalers to set prices and ensure they generate a reasonable profit.
