2. WHAT IS A PRICING STRUCTURE?
It defines your
pricing set up for
products or services,
including your core
price points plus
discounts, offers, and
strategy.
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4. TYPES OF PRICING STRUCTURE
COMPETITIVE
PRICING
Is matching the price off
your product with the
price set by the industry
leader. Since prices will
be about the same, you
will focus on other
product, such as quality
and customer service.
PRESTIGE
PRICING
Involves pricing your
product high so that only
wealthier customers can
afford it. you attempt to
use the high price and
limited availability to
enhance your products
image, causing the product
to be viewed as a status
symbol.
PROFITABILITY
PRICING
It designs to maximize
your profit. (formula) You
have to monitor price
and volume of sales
carefully, as setting the
price too high will reduce
sales volume, resulting
in lower profit.
VOLUME PRICING
Is when you far
go the highest
price possible in
exchange for
sales volume
with a particular
customer.
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PP FORMULA:
PROFITS=REVEN
UE -EXPENSES
(P= R-E).
5. PRICING STRUCTURE
A pricing
structure defines
and organizes
prices for your
company’s
products and
services.
When PRICE is
foundational to
running a
successful
business
.
For instance you
might offer a
discount when a
customer buy
more than one
product
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A pricing structure
prices products
and services so
that it makes
sense to customer
and gets them to
buy.
7. HOW?
STEP 1 :DO YOUR
HOMEWORK
Before you tackle
pricing, do your
homework. Research
and understand your
target customers, the
competition, and the
marketplace.
Depending on the
industry you operate in,
other factors may affect
price such as local laws
and industry regulations.
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8. TIPS FOR DOING YOUR HOMEWORK
This first step is the foundation for effective pricing. This tips
can help.
KNOW YOUR
CUSTOMERS
No matter your product
or service, you must
identify your target
audience and learn as
much about them as
possible.
EXAMINE
COMPETITION
Look at your competitors
and dissect their pricing
structure, to identify if
you’re too far below the
market price, which eats
into your profits.
UNDERSTAND
THE MARKET
You want to know your
market, including how it
may be evolve overtime
and what trends can
affect you later.
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9. HOW?
STEP 2 :
DEFINE SUCCESS
METRICS
This is which you
defines how your
business is
presented to
customers.
Now decide how to
measure your
sales.
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10. TIPS FOR DEFINING SUCCESS METRICS
Your business flies blind without
metrics.
TRACK WHAT’S
IMPORTANT TO
YOUR
BUSINESS
The metrics should
align with your
company’s offerings.
LOOK AT YOUR
SALES
PROCESS
Examine how you
generate sales.
Should you bundle
products or services
together?
Do you offer greater
benefits when
customers more?
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11. HOW?
STEP 3 :FIND A BASE PRICE
The base price gives you a
starting point from which to
assess higher price points,
how much to discount
when you want to generate
demand, and pricing
decisions..
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12. TIPS FOR FINDING YOUR BASE PRICE
Setting your base price can prove tricky.
FACTOR YOUR
COST
Your base price should
cover your cost, and include
some markup. This gives
you flexibility to discount
when you employ pricing
strategies such as bundling.
EVALUATE VALUE
You offerings hold
higher value to some
customers than
others.
It is important to define
your target audience.
Your research helps to
evaluate your offerings
value to arrive at a
base price.
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13. HOW?
STEP 4 :DEVELOP
PRICING MODELS
This pricing model help
you assess which pricing
structure makes the most
sense.
For instance, with
vacation rentals, if your
business is seasonal,
your model should
account for more units
rented during your high
season.
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14. TIPS FOR DEVELOPING PRICING MODELS
This is where the rubber meets the road.
ESTABLISH
FENCES
Set appropriate buyer
and price fences in
your model.
KEEP IT
SIMPLE
The first time you model
pricing, keep it simple and
don’t get lost in the details.
If you use tiered pricing,
limit the tiers to no more
than three.
Keep discounts and
special offers to a
minimum or consider
excluding them until
you’ve collected real
world pricing data.
by seeing how
customers respond to
your pricing structure
before adding
complexity into the
mix.
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15. HOW?
STEP 5 :
EXPERIMENT TO
GROW MARKET
SHARE AND PROFIT
Despite your best
efforts, you wont
know how
customers, will
respond to your
pricing until you try
them.
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16. TIPS FOR EXPERIMENTING
If you don’t test and experiment, it’s an uphill battle to
grow.
CHOOSE LOW-
RISK TEST
Start test in a low-risk
environment.
Choose customers,
you have a strong
relationship with
Select a small sample
size of your customer
base
Adjust based on your
findings, and continue
testing.
Until you see your
success metrics
moving in the right
direction.
LOOK AT NON-
SALES
OUTCOMES
Analyze if certain
pricing structures
incur higher costs in
time, money, or
effort.
And consider how
your pricing
approach affects
customers
perception relative to
competitors.
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18. PRICING
it is the decide amount
required as payment for (
something offered for sale).
PRICING STRATEGY
It is important for companies who
wish to achieve success by finding the
price point where they can maximize
sales and profit.
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It defines your pricing
set up for products or
services, including
your core price points
plus discounts, offers,
and strategy.
Pricing structure
20. A.
P
R
E
M
I
U
M
P
R
I
C
I
N
G
Establishes a price higher than
the competitors.
A strategy that can be effectively
used when there is something
unique about the product or
when the the product is first to
market and the business has a
distinct competitive advantage.
A high price designed to reflect
quality, reputation and status.
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21. P
R
I
C
I
N
G
Is designed to capture market
share by entering the market
with a low price relative to the
competition to attract buyers.
The ide is that the business will
be able to raise awareness and
get people to try the product.
Even though penetration pricing
may initially create a loss for the
company, the hope is that it will
help to generate word of mouth
and create awareness amid a
crowded market category.
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B. PENETRATION
22. C.
P
R
I
C
E
S
K
I
M
M
I
N
G
Designed to help
businesses maximize
sales on new products
and services,price
skimming incolves setting
rates high during the
introfductory phase
Not only does price
skimming help a small
business recoup its
development costs, but it
also creates an illusion of
quality and exclusively
when your item is first
introduced to the market.
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23. D.
E
C
O
N
O
M
Y
P
R
I
C
I
N
G
With this strategy,
businesses minimize the
costs associated with
marketing and production
in order to keep product
prices down. As a result,
customers can purchase
the products they need
without frills.
Incredibly effective for
large companies, an be
dangerous for small
businesses, because
small businesses lack the
sales volume of larger
companies.
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24. P
R
I
C
I
N
G
Is commonly used by marketers
in the prices they establish for
their products.
Is a strategy that uses pricing to
influence a customer's spending
or shopping habits to make
more or higher value sales. The
goal is to meet a customer's
psychological need for
something, whether that's saving
money, investing in the highest
quality item, or getting a “good
deal.”
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E.
PSYCHOLOGICAL
25. Meet the
full team
Ma. Mae
Montesclaros
Shello Galagar Ericah B. Bongay
Florenda N.
Basay
Reynaldo Palmosa Bernard Canoy Cj D. Camay Ian P. Abello
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Analyn Lobitana
