FINE TUNING OF BASE PRICEA base price is the general price level at which the company expect to sell thegoodsor services. Thebasepricelevel iscorrelatedwiththepricingpolicy:above the market, at market or below the market. Several techniques enablesmarket managers to adjust prices within a general range in response to changein competition, ovt. regulation, consumer demand and promotional !positioning goal. "ine tuning techniques o# price are short$run approaches that donot change the general price level but result in changes within a general pricelevel. Techniques #or%ne tuninga priceis divided into three main categories:&iscounts, eographical pricing ! other pricing tactics. &iscounts are o# seventypes: 'uality &iscount, (ash &iscount, "unctional &iscount, Seasonal &iscount,)romotional Allowances, and*ero$percent"inancing!+ebates. Thesetypeo#tactics gives lower prices to those who pay promptly, order a large quantity orper#ormsome#unction#orthemanu#acturer. ,aluebasedpricingisapricingstrategy that has grown out o# the quality movement. -nstead o# %guring pricesbasedoncost or competitor pricesit startswiththecustomer, consider thecompetition and then d determines the appropriate price. (ustomer determinethe value o# the product relative to the value o# alternative. So in value basedpricing the price o# the product is set at a level that seems to the customer to bea good price compare with the price o# other options. Sometimes managers pricetheir products toolowtherebyreducingthecompanypro%t. This seems tohappen #or two reasons. "irst, managers attempt to buy market shares throughaggressive pricing. Second managers have a natural tendency to want to makedecision that can be justi%ed objectively. The problem o# under$pricing can besolvedbylinkingin#ormationabout price, cost anddemandwithinthesamedecisionsupport system. Thedemanddatacanbedevelopedviamarketingresearch. This will enable managers to get the hard data they need to calculatethe e.ect o# pricing decisions on pro%tability. eographical )ricing such as "/0origin pricing, 1ni#orm &elivered pricing, *one )ricing, "reight absorption pricingand 0asing$point pricing are ways o# moderating the impact o# shipping costs ondistant customers. A variety o# other pricing tactics stimulate demand #or certainproducts increase store patronage and o.er more merchandise at speci%c prices.2ow$a$daysmoreandmorecustomersarepayingpricepenalties, whichareextra #ees #or violating the terms o# a purchase contract. The perceived #airnessor un#airness o# a penalty may a.ect some consumer3s willingness to patronise abusiness in #uture. So it is very important to determine a proper based price #or aproduct or serviceswhichwill earnpro%t #or thecompanyandenhancethegrowth taken into consideration customer needs and perspective.