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?
A)Markup
B)Competition-based
C)Cost-plus
D)Demand-based
E)Secondary-market

Question

Quizplus · Accepted Answer

Steinway uses cost-plus pricing because the price of the piano is based on the cost of production plus a markup.

Steinway Produces Concert Grand Pianos, Often Using the Custom Materials