Pricing Strategy

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Pricing Strategy

  1. 1. Pricing Strategy Kelly Chan | Sept 25 2013
  2. 2. Profitability Increased 3.28% 2.45% 6.25% 10.29% sales↑ fixed costs↓ variable costs↓ price←→ Profitability Increased by Each Element Improved cost pricesales
  3. 3. Customer- based Competitor- based Cost-plus cost pricesales Pricing Strategy
  4. 4. Pricing Strategy: Innovation Custom er-based Competitor- based Cost- plus Free Think Small: Penny Ante Price War Automatic Markdowns The Snob Premium Subscribe and save Pay as you wish Pay if it works Name your own price Unit-based Package-based Free Pricing
  5. 5. Pricing Strategy: Innovation vs. Industries Free Think Small: Penny Ante Price War Automatic Markdowns The Snob Premium Subscribe and save Pay as you wish Pay if it works Name your own price Unit-based Package-based Free Pricing Software, Music, Media Google Adwords Transportation, Hospitality Credit Card Women’s Fashion Clothing, Seasonal Products, Cost-effective Products PC, Electronics, Airlines iTune, McDonald Digital products (online) Grocery, Movie/Theaters, Tickets, Newspapers/Magazin es, Information Services, Software

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