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price capturing

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price capturing

Pricing strategy whereby a firm charges a low price for a piece of equipment but a high price for reusable items connected with the equipment. For example, a manufacturer of photocopiers may charge a low price for the photocopier but a high price for parts and accessories. The firm then makes little or no profit on the main item of equipment (in other words, it is a loss leader), but a high profit on accessories.


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