When should a company initiate a price-change?

1. DEVELOPING
PRICING
STRATEGIES
AND PROGRAMS
Presentation by Srujan Dasari

2. WHEN
SHOULD A COMPANY INITIATE
A PRICE-CHANGE?

3. Initiating Price Cuts

4. EXCESS PLANT CAPACITY
Firm needs additional Business
It cannot generate it through
increased sales effort, product improvement
and other measures

5. POSSIBLE TRAPS
Low-Quality trap
Fragile Markettrap
Price-war trap

6. Initiating Price Increases
Generally,
ConsumersPREFER SMALL INCREASESon a regularbasis to SHARP INCREASE

7. CAUSES:

8. DelayedQuotation Pricing
Escalator Clauses
Reduction of
Discounts
Unbundling

9. DISCLAIMER
Created by Srujan Dasari, IIT Kharagpur,
during an internship by
Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com