Special Order Pricing Sheet

The basic objective behind using the special order pricing is to know the lowest price of the product of services. The lowest price of the product or service is that at which the special order pricing is accepted and below which no order is entertained. If the customer demands to lower the price of any product than the normal price prevailing in the market which he wants to purchase, the higher and lower prices are compared and then it is decided whether to lower the price or to reject the special order pricing.

There is one more approach which is used in the special order pricing. In contribution approach, the lower price of a product also generates some sales. In some cases, the customer demands the unique price of the product or the service which actually affects the regular sales of the company. The special order should be completed by the company without any extra effort. There are some additional strategies, which are applied by the company while dealing with the special order pricing.

  1. If the increasing costs are less than the incremental incomes, then the special order pricing are recommended to accept.
  2. If the incremental costs are more than the incremental incomes, then the special order pricing is accepted by the company.
  3. If the incremental costs are equal to incremental costs, then quality features are executed to make the decision whether the company should accept the order or not.

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Special Order Pricing Sheet

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MS Excel Format; File Size: 45KB