This document discusses different pricing strategies and tactics for businesses. It compares pricing a 2L bottle of Coke versus a 330ml can. It then defines pricing strategies such as price skimming, penetration pricing, and price reduction. Tactics mentioned include setting price according to value, hourly rates, and dynamic pricing like Uber uses. The key models discussed are maximizing profits where price is set at the maximum willingness to pay, above the cost of production but below perceived value to generate profits and value. Different tactics aim to set price based on perceived value.

1. 1
The price

2. 2
Bottle ofCoca Cola 2L at$1,75 Canof 330ml at $1,25
Which one will be your choice?
The price > Definition

3. Seta high price for
segmentsthat are more
apt to cost a lot.
Fewerbut more profitable
sales.
3
Price skimming Penetration
Initially lowprice – rapid
acquisitionofa large
marketshare.
Potentialeconomiesof
scale.
Consumersare guidedby
the competition’sprice to
figure out the value ofthe
product.
The price differencesare
minimal.
Lignedup with the
competition
Price strategy
The price > Strategies

4. 4
Reducedprice
Price reductionbasedon
marginal profitability,the
volume oronother
promotionaloffertactics.It
is a strategy thataims at
maximizingsalescontrary
to penetrationwhichis a
strategy aiming at
maximizingmarketshares.
Price strategy
The price > Strategies

5. 5
Accordingto the
value
Accordingto honorary
fees
Setan hourly rate.Thisis a
model usedby
professionalservicessuch
as lawyersand
consultancy offices.
A fluctuating price
followingdemand.E.g.
Uber
Dynamicpricing
The price > Tactics
What are the price tactics?
Setthe price accordingto
the value ofthe product as
it isperceivedby the
buyersrather thanby the
cost ofthe salesman.
Strategy oflow daily
prices.
Price aimedatbasedon
the perceivedvalue ofthe
product.
The perceivedvalue
determinesconception
and costofthe product.

6. 6
The price > Models

7. 7
Maximizationof profits
V= Max. ofthe Willingnessto pay
P= Marketprice
C= Costof production
V-P= Propositionofvalue
P-C= Profitmargin
V-C= Creationofvalue
V P C
P-C
V-P
Different tactics > Price based on value

8. 8
Thank you
Richard Saad
rsaad@become-remarkable.com
514-690-7178