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Steinway produces concert grand pianos, often using the custom materials and designs desired by a specific customer. The average price of these pianos runs about $50,000 depending on the exact piano. What type of pricing does Steinway most likely use for these pianos?

1 Answer

3 votes

Answer:

Cost-Plus

Step-by-step explanation:

Cost plus pricing is a system of determining the selling price of an item by adding a determined amount called mark-up to the total cost of producing the item.Its purpose is to ensure that cost are fully recovered and profit are also made.

In a less competitive environment like Steinway's own , where pianos are being produced to the specification of waiting customers , this gives a good opportunity for cost plus marketing as threats from competitors are minimal or even nil.

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