Cost and Pricing
Discuss the importance of pricing decisions in the short and long term
- Understand why we should always begin with cost estimation and
understand the relationship between costing and pricing decisions.
- Learn how to differentiate and calculate the different types of costs
- Identify different pricing strategies for Goods and services.
- Apply different pricing strategies with a focus on three main bases of
pricing (Costs, customized/freelancing and Value).
- Practice different strategies using examples and case studies
2. Bio
Nile University Egypt
Master's degree in the Management of Technology
Thesis Topic: Logistics 4.0 Implementation Framework
Helwan University, Egypt
Quality Auditor at TCTI Project at GIZ Egypt
Incubation Manager at Nile University
Project Manager at Ta’heal for Vocational Skills Excellence
Project Manager of Innovation pillar at IECC (Innovation,
Entrepreneurship and Competitiveness Centre) at Nile University.
Researcher and technology transfer officer at IECC, Nile
University
Entrepreneurship trainer at Injaz Egypt,
Lean consultant at Symbios-consulting Egypt
Co-founder and CEO of Kaizen for Biomedical industries
3. 1. What does pricing mean for
you?
2. Price, Value and innovation
3. Pricing Vs Price
4. Defining the price
5. Adapting to price
6. Price Changes
15. Positioning and Differentiation
• Positioning:
• Positioning is the mental image you
build about your brand
• Positioning could be on:
• Product
• Channel
• Personnel
• Image
• Value
16. Positioning and
Differentiation
• To create the right positioning you have to differentiate
your product
• Product differentiation includes:
Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
Style
Design
Maintenance
Ordering ease
Delivery
Installation
Customer training
Customer consulting
17. 17
Positioning statement summarizes company or brand positioning using
this form: To (target segment and need) our (brand) is (concept) that
(point of difference).
Ex. To small and medium enterprises who need to save costs , Kyan is
a wholesaler that have the financial resources and business partners that
enable him to perform bulk breaking and financing services to his
business buyers.
Positioning Statement
18. Price as a value
indicator
• Many consumers use price as an
indicator of quality (PRICE-QUALITY
INFERENCES)
• Many sellers believe prices should end
in an odd number. Customers see an
item priced at $299 as being in the
$200 rather than the $300 range
(PRICE ENDINGS )
• Another explanation for the popularity of “9”
endings is that they suggest a discount or
bargain, so if a company wants a high-price
image, it should probably avoid the odd-
ending tactic
24. Types of
Discounts
• Discount: A price reduction to buyers
who pay bills promptly.
• Quantity Discount: A price reduction
to those who buy large volumes.
• Functional Discount: Discount (also
called trade discount) offered by a
manufacturer to trade channel
• Seasonal Discount: A price
reduction to those who buy
merchandise or services out of
season.
• Allowance: An extra payment
designed to gain reseller participation
in special programs.