Types of Business Purpose Essay

Submitted By Andrew63
Words: 366
Pages: 2

Types of Business Purposes:
Selling goods and services at a profit Selling goods or services for more than they cost to make or buy, for example if something costs £3.00 to manufacture or buy in, retailers could be selling this for up to £6.00; several organisations do this such as: Tesco. The effect this has on the business is that they make money, and ultimately make the business better to compete with the surrounding market.
Selling goods and services at cost
Selling goods and services at the same price as it costs to make or buy; for example if something costs £3.00 to manufacture or buy in, retailers will sell it for that price. The impact of this on the business is it will draw in more customers and still break–even. Several organisations use this technique such as: Asda.
Selling goods and services below cost
Selling goods and services below the amount it costs to make or buy, for example if something costs £3.00 to manufacture or buy in, retailers will probably sell for £2.99. The impact this has on the organisation is it will draw in more customers but, if the business wants to break–even they will have to sell for a profit in other areas. Several organisations use this as an approach to attracting customers such as: Aldi.
Giving goods or services away for free
Giving goods or usually services free of charge, for example if it costs £50,000 to give humanitarian aid organisations will give it for free and hope that they receive donations or they will up the…