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Price-based selling is a specific selling technique in which a business exclusively reduces their price in attempt to close the sales cycle. Price-based selling clearly exists in businesses such as: commodity sales, auto sales, hospitality, and even some retail stores.
The customer can shop and order through the internet and the merchandise is dropped at the customer's doorstep or an e-tailer. In some cases, e-retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler.
Comet also traded on its after-sales service, a twice-weekly nationwide delivery service, and its ability to undercut most competitors by around 10%. [5] Goods were sold with 12 months' free service, including parts and labour, and Comet guaranteed that it would beat "any genuine advertised price" for brand new items. [8]
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Ultimately, the $54 markup price is the shop's margin of profit. Cost-plus pricing is common and there are many examples where the margin is transparent to buyers. [ 4 ] Costco reportedly created rules to limit product markups to 15% with an average markup of 11% across all products sold. [ 5 ]