PPT-Price strategy: Pricing Methods

COST BASED PRICING In the case of cost base pricing a company arrives at a list price for the product by calculating its total costs and then adding a desire profit margin The calculation for such cost include the following. for . “. the people’s car. ”. Presented by. :. Dr. Amrita . Singh. Alok. Kumar. Ajay Singh. Anushree. . Pandit. Gaganbir. . Kaur. Jatin. . Saxena. Jyoti. Ishrat. . Batool. Team - Brazen. Development of a One . Pricing Strategies. Market Skimming. Market Skimming. High price, Low volumes. Skim the profit from the market. Suitable for products that have short life cycles or which will face competition at some point in the future (e.g. after a patent runs out). Price bundling. is the tactic of marketing two or more products and/or services for a price below the sum of the individual prices. It creates an incentive for purchasers of one product to also buy other(s).. Paraschos. . Koutris. Prasang. . Upadhyaya. Magdalena . Balazinska. Bill Howe. Dan . Suciu. University of Washington. PODS 2012. Motivation. Data is increasingly . sold. and . bought. on the web. Price. The amount of money charged for a product or service, . or . the sum of the values that consumers exchange for the benefits of having or using the product or service.. Price Floor: minimum price. Dickinson & Vladimir. 2008. . Selling the Sea: An Inside Look at the Cruise Industry. . John Wiley and Sons, Inc. Hoboken, NJ. . Consumers’ Cost Comparison. Land-based hotel resort: low initial price, high subsequent costs. What is the best price for my product?. What is the perceived value of the good or service by the customer? . Are there any similar products on the market? . What price is the competition asking?. Pricing Questions. 15. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.. Identify three methods that firms use to set their prices.. 1. American Logistics Association – Commissary Roundtable – May 2018. Mr. Robert Comer. Program Executive Officer. 2. Agenda. Topic. Presenter. Time. Clear Demand Introduction. Concept of price and value relationship. Pricing objectives. Factors influencing price. Costs of producing and marketing a product. Approaches to determining price. Break-even analysis. GOALS. 2. The Steps of Price Planning. . What is Skim Pricing?. When a Marketer creates a high initial price. . Overtime, the marketer will lower the price.. This allows the business to recover its sunken costs.. Goals of Skim Pricing. Recover from sunk costs. Learning Objectives. Learning Objective 15.1 . Identify three methods that firms use to set their prices.. Learning Objective 15.2. Describe the difference between an everyday low pricing (EDLP) strategy and a high/low strategy. . ?. Pricing . is a marketing function in which both a buyer . and. a seller . perceive the . most favorable value . for a good or service. 2. Price– You get what you pay for…. What does that phrase mean to you?. Strategy. This strategy is when a business charges the maximum price, then later lowers the price to attract the second round of customers.. Then the second round of customers will buy the product since it’s way cheaper..