Dick It makes sense.

Tom And you can raise the price after your customers try continue to buy it.

Dick I see. And what is the price de-emphasis you mentioned before?

Tom It concerns high quality expensive items. Price de-emphasis means that you don't call attention to the price at all.

Dick I know, it concerns our fine jewelry department or designer fashions.

Tom Yes, I see you are going to do very well.

Dick Your suggestions seem to be very useful. Don't foryou have a discount on

any shopping you do in my shop.

Tom In such a case I'll be back tomorrow with my wife.

Active Vocabulary

location - місце розташування

extra services - додаткові послуги

installation services - послуги щодо встановлення

to charge prices - встановлювати ціни

price emphasis - продаж товару за рахунок низької ціни

price de-emphasis - спроба продати товар не за рахунок низької ціни, а за

рахунок інших факторів

loss-leader item - товар, який продається за дуже низькою ціною, для

залучення покупців

off-even pricing - ціна, яка не доходить до “круглої” суми і стимулює

бажання покупця придбати

favorable psychological effect - сприятливий психологічний ефект

to start with especially low prices - починати з дуже низьких цін

new brand - нова марка (товара)

high quality expensive item - високоякісний дорогий продукт

Vocabulary Practice

Exercise 1. Change the sentences according to the model

Model: The tape recorder is inexpensive. Your store sells the tape recorder.

The tape recorder that your store sells is inexpensive.

1. The dresses are fashionable. The store introduced the new dresses last week.

2. The store has many refrigerators. Dick owns the store.

3. The stereo is high-priced. My daughter wants the stereo.

4. The price determines the number of sales. A retailer sets the price.

5. Very often the people don't want extra services. Many supermarkets offer extra services.

6. Your shop should have loss-leader item. Loss-leader item will attract the customers.

7. Price de-emphasis works with high quality expensive items. Price-de-emphasis means that you don't call attention to the price at all.

Exercise 2. Change the sentences according to the model.

Model: We won't introduce a new line of merchandise unless you suggest it.

We will introduce a new line of merchandise if you don't suggest it.

1. Tape recorders are popular unless the price is too high.

2. The consumers will continue to buy unless they don't like the item.

3. The buyer can get installation services unless he wants to pay for it.

4. The salesman will help you unless he is too busy.

5. People won't try a new product unless there is advertising.

6. Customers won't buy the new brand, unless the price is low.

7. They won't raise the price unless it is necessary.

Exercise 3. Answer the questions.

1. In what way were the prices charged in this country?

2. What is your idea of the term market price?

3. What type of pricing policy works with the majority of consumer goods? (price-emphasis, price de-emphasis)

4. What is more preferable for you in pricing: low prices with no extra services or high prices with home delivery, repair and other services?

5. Why is it so important to have loss leader item in a shop?

6. What is off-even pricing made for?

7. How can your pricing policy help to compete with well known products?

Exercise 4. Translate into English.

1. Цей магазин надає покупцю вигідні кредитні умови.

2. Товар має низьку ціну. Вона покриє витрати.

3. Ця фірма веде недоцільну ціноутворюючу політику.

4. Перш, ніж випускати товар, необхідно ретельно вивчити попит і пропозицію.

5. Держава встановлює ціни на ряд продуктів.

6. Магазин має чудове місце розташування.

7. Супермаркет надає покупцю багато додаткових послуг: доставку товарів додому, кредит, встановлення и т.п.

8. Нова марка безперечно зацікавить покупців.

9. Починайте з низької ціни.

10. Продаж за рахунок низької ціни діє при продажі товарів народного вжитку.

Exercise 5. Set your imagination free.

You are a journalist and you are to interview the minister of finance about the pricing policy in this country. What questions would you ask him?

Grammar Exercises

Exercise 1. Make sentences interrogative and negative.

Model: They can change your credit terms at once.

Can they change your credit terms at once?

They can't change your credit terms.

1. They must research supply and demand before they start to produce the new item.

2. The company has to cover the costs by all means.

3. The middlemen may set the new price.

4. They can persue unsound price policies.

5. They must choose another location for their shop.

Exercise 2. Choose the necessary modal verb and put it in the sentence.

1. Off-even pricing ... undoubtedly produce favorable psychological effect on a consumer.

2. I spoke with the chief. Now you... change the credit terms.

3. They are very talented specialists. I think they... design the new line very quickly.

4. The situation has changed, so we ... start with specially low prices.

5. We... choose price emphasis policy for this item.