Pricing the product
A Bryant Homes case study

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Page 1: Introduction

Bryant Homes 4 Image 1Pricing is one of the most important decisions made by any business organisation. Economists use the term market clearing price to identify a price at which sellers are prepared to sell because they feel they are getting a fair price, and buyers are prepared to buy because they feel they are getting value for money. If prices are too high or too low the market will fail to clear. The housing market provides us with an example of a market-place that is often slow in clearing - when prices start to fall, sellers are reluctant to sell their properties because they feel that they will make a loss. When prices are rising, buyers may be more reluctant to make a purchase.

Students will be aware that the prices of houses provide one of the most common subjects for conversation in this country. This case study sets out to examine a key aspect of house pricing - how Bryant Homes, one of this country’s leading builders of houses, goes about pricing its new properties.

Bryant Homes | Pricing the product