1. Pricing evolution
November, 2013
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CONSULTING
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2. Pricing evolution – it’s a journey!
Effort, data input,
customer input
Pre-emptive:
sophisticated,
experimentally driven
Adaptive: factbased; some
customer insights
Reactive:
competition
based
Primitive
pricing
Cost-plus
pricing
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Supply factor
pricing
• Lead-time
• Factory
capacity
• Availability
Special pricing
• Exception
pricing: e.g.,
Segmented
quick delivery
• Incorporates
differences in • Option and
1) cost-to serve accessories
Psychological
Product
• Bundling
and 2) price
• Reference
differentiation
• Situational
sensitivities
prices
• Premium vs.
• Lifecycle pricing
Promotional
commodity
• Revenue sharing, • Rounding
• Differentiation • Loss leaders
e.g. with partners
vs. competition • Rebates
for large deals
• Event
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Value-based
pricing
based on
buyers’
perceptions
of value
Optimized prices
• Incorporates perceived and
quantifiable value to
customer
• Dynamic and adaptive
pricing
• Rigid pricing tests
• Time and place
discrimination
Pricing
sophistication
Copyright @ 2013 Oneforce
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