International Business English learning [15th]

About price

The sales department manager and finance department manager of a company have different opinions on the pricing of new products.

　English text

A: I really think this price is too high. A price has to be based on costs and the profit you want.
B: I know. But pricing has to be based on what MERs want too, which differs from place to place and time to time.
A: Yes, experience shows the same product is priced differently in different markets. But why so much higher in this market?
B:
There are too rich people in this area, so a skimming price is OK --
And even needed, because they think only a high price means a good
Product.
A: But the market prices for other similar products are
Much lower. Buyers will notice the flexibility in the price structure,
And buy from other companies.
B: I don't think so. I think
Others will have to raise their price ceiling to make MERs believe
That their products are as good as ours.

　Chinese Translation

A: I really think the price is too high. The price depends on the cost and the profit you want.
B: I know. However, pricing must also be based on the customer's needs, which may vary by location.
A: That's right. Based on experience, different prices will be set for the same product in different markets. But why is it so high in this market?
B: There are many rich people in this region, so the highest profit price can even be said to be necessary. Because they think that only high prices can represent good products.
A: However, the market price of other similar products is much lower. Buyers will pay attention to the price difference and switch to other companies' products.
B: I don't think so. I think other companies have to raise the price limit to convince customers that their products are as good as ours.

　Phrase explanation

Skimming price highest interest acquisition price; liposuction price
"Skim", when a verb has an explanation of 'float on the surface of a liquid. And "skimming"
In terms of business, there is an extended meaning, which refers to the 'pricing strategy for obtaining the highest-interest policy '. This strategy is usually used when a new product is just launched, attracting consumers due to the special nature of the product itself, coupled with no competitors
The manufacturer pushes up the price to maximize the profit. "Skimming price" refers to 'maximum profit-making price '.

Market price market price
The price of a commodity in the market is determined by the supply and demand conditions.

Flexibility in the price structure price scalability
"Flexibility", 'elastic '. "Price structure" can be solved as 'price rate '. "Flexibility in the price structure" refers to the scaling space of a product at the maximum price to the minimum price. "Structure", 'struct '.

Price ceiling price limit, maximum price
"Ceiling", originally referred to as 'ceilings '; extended to 'ceilings', often used to refer to the maximum range of financial and commercial restrictions. The opposite word is "price floor"-'lowest price, lower limit '; "floor" originally meant 'floor '.

　Sentence Summary

●Experience-based display...
1. Experience shows that...
2. It's well-known that...
3. It's common knowledge that...
The purpose of such a sentence is to emphasize that your argument is based on objective observation and practical experience. It is not a subjective idea or speculation. Therefore, this statement sounds much more convincing than "I think" 'I personally think.