how should acompany set prices initially for products or services
TRANSCRIPT
Step 1:Selecting The Pricing Objective
SurvivalMaximum Current
ProfitMaximum Market
ShareMaximum Market
Skimming
Price SensitivityPrice Elasticity
Estimating Demand CurvesSurveys
Price ExperimentsStatistical Analysis
Accumulated Production -decline with the average cost
Target Costing -concentrated effort by engineers & designers to achieve a particular reduced cost
Anticipating Competitor’s reactions -Assuming standard way to a price change -Considering each change a fresh-new challenge
Going-rate Pricing
Auction-type Pricing English auctions (ascending bids) Dutch auctions(descending bids) Sealed-bid auctions