PRICE

Price
"Riee heis net
ayment by he
2 " he seler ofeing.
ames f arce
Rent, Tahon See, Comsultokon Fee,
Fare, Zntrest , Premium, Salary
age, Commission, Tavi
Histo hieal Idea J Kice y Negoka fon
Me devn Zdea-> One Rice Jor Pu.
Price Has Opevated As he Major DeJerminmt
Bayer Choice But Noo Non Rie
prie
PrieengShategy
ByThe De
Z dargely De heomined!
cisi ens
Targek Markel Posiko ning.
Hig
SHPremium High Vaue Superb Vilne

M Overchaging FMedium KlueGrod Vlu

I l e Econsycono".

PRICE QuaLITYSTRATEGIEEs.
SETTING THE ParcE
Selechng he Kieing echve.
2. Detevmining Demand.
3.Eshmatinf osts.
4.Anelyzi
Hnay7 ompebtori Prices k Ofer
s. Sellk, A etne Method.
6. SelechG he Itnål Pice.
SELECTING THE PRICING OBTECT/VE
Survi val
Cuvvent Profit Maximisahon.
Maximum Curent Revenue.
Marimum Sales Grostl (Mk4. PenataknRig)
Marimun Market Sk imm
Product Qualily keadeikp
2DETERMINING DEMAND
Jactovs Alec hng Riee Sensikuiy
Unigue Value Efect.
Substitute -Avareness Elfeet.
Deflieult -Compavison Eeet.
To tal Expenalibare EHeet.
End Benelit Elect.
Shared Cest E4ect
Sunk Zavesdment EfectE.
Preee-Quaif EHee.
Inventy
3 ESTMATINGcOSTS
Iined Cosh Varialh Cosh =T6lal CorA
Feonomies Of Seale
Expevicnee
ANALYZING COMPET7oks PRICES & OFFERS
SELECTING A PRICING METHOD
Lon Parce HGu Puc
M- P 26le Cosr ompektovi CustomeNo Pess:1le
Prices&Rice Assesent?e vngmd H
7 e.

TE TH REF-C: Me DEt. Fe c SarNG. 2r7

iMaer U Paicna.
Fixed Cost : ks. 100, ooo. VC. zh s7pwunie.

Epecfed Saku z 20, 00o Unik.

.Unit Cost VC
+sdASIE =5* t
Now Hssume Desived Markuy ir So% m Sh
Maen U PeueG =
lailti- 0-R2o1
2 BREAK Evan AuasSIs &TaasErkoaz kucnG.
BEP
V
TaRGET ReTuRN Percna.
Rice =UnitCat4 Desived Reluvn XZaveskdGpk!
n i t Sales.

3. CEIVED VhLuvE PercnG

4. GowG RaTE PercwG.

S.SaRLED BID PeicNG.

A. KsycHOLOGICRL RIcING.
g e yieing.
Relerence Ricing
Odd Even Endirg.
&Tme TFLUENE OeOTwae Mera Mix EheMEN.
C. CoMPA NY PerciNG oLcrES.
D. ZmPRET Or Peics Ow OTuar ParTIss.
P-
 ADAPTING THE PRICE
GEOGRAPHICALPeicng.
. FOR PavenG
2. UnrroRm_DeLivERED KeieNa CPoshege Shamp)
. Zowe Peewa.
4.BASING Powr PercING
AssoRPTION erenG.
s. IREIGHT
PeuCE DiscouNTs & HuowANCES.
. Cas DscouNT
a. QuANTy_ DiscoUM7T.
s. TRADE DiscovNT.
4. SEASo NAL DscouNT.
AuowANCEs
PRO MoZziONAL PeicLNG
4.oss LeaveR PkewG.
2. SPECIaL Evsnz PercIwG.
3. CasN Keaaras|
4. los ZNTREsTFhnawewG.
WarRANTIES & Seruece CoNTRNcrs.
6. yeHoLOGICAe Discov wTNG.
DisCAIMMINATORY Feicen
1. Cos7o MER SaG MENr Sasis.
2. PRoDUe7 Form Bnsis,
s. PhaceE Basis.
4. ZMAGE Sasis.
s. TimE Basis.
RequIRamENTs FoR Pece DucmmINATION
4.Market Must Be Segmentable.
2.SementsMust Shos Dll, enf ZndemsikuqDemd
Couer Prgee Seg mek Membe.

6. Ne arlame RerenbmontbZUkKU. 2 gal. Pig

Feo DyeT Nx lecING
ProDUver hiwa PercING
2. OPmowas PeoDuc r/FaaTuR &FkvcING.
3. Caerva Pkoduer eicIw G.
4. 7o PaRT PIcING
s. B Peoduer PercnG.
6. PeopueT BoNDLINGPRrewG.

ZNITIA7/NG & ResPoNDING o eicE CuANGES.

ZNITIATING PRICE CUE
SHANG.
REAsONS> °Exesss CapacTy DzcuINING Mz.
Recesr oN Hcq uIRE M*T SnaRa Lenoe
TRAP
LEans l+*low QuALIT
FRAGILE MeT. SwARe 7RAP.
SHALLDw Pocers TRAP
INITIATING PRICE ZNGREASES
KEAsoN4» CuRR ENT PROFIT NAxrmmsATioN.
CosTZNFLATION. OveedEMAND
COmMON MaTHo2s_UE MGREAS/NG PeicsS.
DELasED yoTATION PercI NG.
Use O rCALAToR CLAuse.
.UNeUNDLIMGOeTooDs& Sskncss.
ReDvc71o N Oe Disco UNTS.
METHOD TacweiNg HhaN Cosrè/0e 0vrapEMAND
WTHOUZ KAISIN Peicas
SHRINKING Twe Amovr OF koduer.
SoesTu TUTING .sss Exes NSIVE arakint..
REDUCINvG Prouer FaATUREs.
RemovIwG Peover Seawcs.
l a s s Exreneive PneraaING ParERIL Or kançee hke
- Repvewe . Or Sizce Or MoDELs. Orrane.
CREATING New Ecowom BeANDs.

P-2
Cus TeMERS KEACTIONg / Pece CHANGEG
PRICE CUTS
1.A New MoDEL Zs Goma 7o REPacs Twe ZrEm.
2.Zrem Has Soms FavLTr &Ls Nor SeuuING Wezu.
3. FIRM Zs UnzER FiwaNeIAL CaIsIs 2 Ma Nor
SUrvIVe 7o PaeTs.
Gve SPaRE PaRTs.
4. Peicas Wu Coma Down FuRTHER 2 Z/
Pass T6 War
S. THeQUnLI Has BeEN RezveED.
PRICETNCREAsEr
1. 7HE ZrEm Z Z SuoRTsuPPs & May
Nor Ba AvanABLE E ASILS
2. Tue Zrem KaPkasENTS Uwus uaLL
Goo VALuE.
3. Seiuse Zs AFFIE &
GeEcay Whe
Z
SaAk,
wa
uar 7ue
amPETIMRE KEACTIONZa kcs CaANEKs
. . ZZ Dom PooRL
2. Co. Wwrs 7% AegvreelaRGEx Mer Suars
3. .WanTs Tms WwoLa ZwDos Tey 76 KePuea
PRICES 76 ST mOLATE DamAwD,

OpTIONs AGAINST PaicE Cors

.RIc6 MMAIN7ENRNCE.
2. Raise VERCEIvED GvALITY.
4
3. ParcE
ReDvcE
.ZvcRGNsE Perce & ZMPRo ve QunLITY.
5. how-PRice hGwTER LIvE.

P-
 KES PONDING 7oPRic& CHaNGES.
CeMEIDER FesuoNGZssvas BaceR KEMIs.
LWus D» Tma ComPETITOe Cuanee Tma Paea?
ZncREnst MaRNEr Suars .
To Umarze Excass CanciT.
76 MaET ZNLATION.
To LanD Zwao TRYLI`G Pec CaanGE.
e, PhAN T6 MAK e 7ws CHA NGE YanPoRARs Ua a
WwaT hme HareEN T6 7aE Cos
Me Sunas & PeoFITs, ZE Zr Dio Mor
Kes PON»?
REOaR_Cór gowe 76 RasPoNDb?
Q4 WmATRE 7Ha ComrETITORs_&OTuae
FiRMs REsPoNsEs EIreus 76 Ba
ErcN Possidis kEACTIw?

|Has ComeTm Ho Oue Peea An

PessaN7 hEvE
CUT Hs No CoNTIwus lo
PRIcE? No T ComTITa
yes
IEL 76 Hava |T6 Bs A Har Hrs
SGNIFICANT
VErMANENT Perca BaEN
OuA SAEs? 1 PercE Cur Cez
S0.S-2-o y 212-40
Offe A "Sly
idakng Remi Deo
Ropae OFF
SALE2.
Dilde Seal
he lim-
ComesTTORÉ
PeicE.
i a Compeh
PaLCE-RaacTIN aogaAM Ea MesTING ComPETIZeRiP-22
PeicE Coz