Pricing - Q&A

Pricing - Q&A

Pricing Strategy Understanding Consumer Value Max price for yearbook? We each place different value (and willing to pay different price) for the same product Key to pricing is understanding the value that buyers place on a product or

service How is that done? Shirt Example

Lax T-shirts: cost $4/shirt Sell $10/shirt Margin/profit: $6/shirt Price markup is 150% (104)/4=150% Would lowering the selling price to $7 Sell more shirts? Increase total profits?

Pricing Factors Supply and Demand When was the last time you clearly overpaid for a product? Why? Peak and off-peak rates Costs

To ensure a profit Competition Evaluate Verizon vs. Comcast Combination of the

three above Market Share Market Share is the percentage of the total sales volume generated by all competitors in a

given market. Iphones? Tickets Some minor league baseball games are $6. Many dont offer discount tickets. Why? Substitutes Brand Loyalty There are lots of products with available

substitutes (cereals, detergents, etc.) Name a product where you would NOT accept a substitute? Psychological Pricing Odd/even pricing: suggests bargains Prestige pricing: suggests exclusiveness Multi-unit pricing: suggests a bargain

by pricing items in multiples (1 for $.33 or 3 for $.99) Bundle pricing: All inclusive trip, Verizon Promotional pricing: holidays, rebates Discount pricing: based on quantity, seasonal items, terms (cash or paying by certain date)

Luxury vs. Necessity Gym membership Cell phone Cold medicine when youre sick Urgency of Purchase When was the last time you bought something because of a time restriction? HHS tickets going on sale more at door?

Gas when your car was on empty Infomercial with time winding down Price wars Airline tickets, gasoline, computers How much does price factoring in the three products named above? Is anyone loyal to an airline based on frequent flyer miles (price & promotional tie in)?

Conclusion Create awareness to sell right product, at the right place, at the right price to the right people.

Recently Viewed Presentations

  • LEWISHAM SERVICES FOR CHILDREN & FAMILIES: SEPTEMBER 2018

    LEWISHAM SERVICES FOR CHILDREN & FAMILIES: SEPTEMBER 2018

    Lewisham Services For Children & Families: SEPTEMBER 2018. Family Information Service (FIS) The online directory of services provides a wide range of information for children, young people, families and practitioners, including:
  • Must Know Radiology

    Must Know Radiology

    Left lateral decubitis. Massive free air over liver. Rigler (double wall) sign. Air on both sides of bowel wall. Pneumoperitoneum. Falciform ligament sign. Small free air. Football sign left. Small free air right. Focal Abdominal Pain. Focal abdominal pain. Sites.
  • DAT301: A Database Developer and DBA Perspective: LINQ to SQL ...

    DAT301: A Database Developer and DBA Perspective: LINQ to SQL ...

    A Database Developer and DBA Perspective: LINQ to SQL and Entity Framework vs. Stored Procedures
  • Long-Term Care - Modern Woodmen of America

    Long-Term Care - Modern Woodmen of America

    Long-term care insurance partnership programs are between Medicaid and long-term care insurers. They provide special eligibility rules under Medicaid. Under these special rules, if long-term care benefits are exhausted, an equal amount of estate assets is sheltered from the state's...
  • Acyclic Colorings of Graph Subdivisions 1 Debajyoti Mondal

    Acyclic Colorings of Graph Subdivisions 1 Debajyoti Mondal

    Each edge has exactly one division vertex. 6/21/2011. IWOCA 2011, Victoria. Open Problems. What is the complexity of acyclic 4-colorings for graphs with maximum . degree less than 7? What is the minimum positive constant . c, such that every...
  • Early Renaissancce Italy - Ms O'Reilly's art classes

    Early Renaissancce Italy - Ms O'Reilly's art classes

    Painters sought to evoke a nostalgic yearning for rural, pastoral life, the infinite possibilities of man and to accurately portray the power and grandeur of nature. English poets like Wordsworth, Shelley, Keats and Coleridge also celebrated the many facets of...
  • The FITT Principle

    The FITT Principle

    The FITT Principle The FITT principle provides a framework you can follow for developing an effective exercise program. This principle allows you to design a routine that ensures that you are going to achieve a high level of physical fitness...
  • Time to make a system - Teachers for Tech and Science

    Time to make a system - Teachers for Tech and Science

    Fluids are substances that do not have a fixed shape, which means that gases and liquids are fluids. Convection currents can occur in gases [e.g. air] and in liquids [e.g. water]. 4. Convection only occurs through convection . currents. Natural...