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Showing posts with the label Pricing strategies

U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook

📉 U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook As 2025 unfolds, the U.S. economy is showing signs of strain amid a global slowdown and heightened trade barriers. Here's a detailed look at the latest forecasts and implications based on insights from the OECD, Federal Reserve, and key market indicators . 📊 1. U.S. Growth Forecast Downgraded by OECD The Organisation for Economic Co-operation and Development (OECD) has revised the U.S. GDP growth forecast for 2025 to 1.6% , down from 2.8% in 2024 . The forecast for 2026 remains muted at 1.5% , reflecting persistent uncertainty driven by: Elevated trade barriers Reduced consumer spending power Sluggish business investment 💸 2. Tariffs Fueling Inflation & Trade Costs The average U.S. tariff rate has climbed to 15.4% , the highest level since 1938 . These tariffs have raised import costs, which are now being passed on to consumers: Projected consumer price inflation is expected to rise to...

Pricing strategies

Pricing strategies refer to the methods and techniques used by businesses to set prices for their products or services. The pricing strategy a business chooses will depend on various factors such as the type of product or service, the target market, and the level of competition in the market. Here are some common pricing strategies used by businesses: Cost-plus pricing: This pricing strategy involves adding a markup to the cost of producing a product or providing a service. The markup is typically a percentage of the cost and represents the profit margin for the business. Penetration pricing: This pricing strategy involves setting a low price for a new product or service to attract customers and gain market share. The goal is to create a large customer base quickly and then gradually increase the price over time. Price skimming: This pricing strategy involves setting a high price for a new product or service with unique features or benefits. The goal is to maximize profits by targeti...