02. types of pricing strategies
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Transcript of 02. types of pricing strategies
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The Science of StartSession 5: Pricing strategies
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What do you need tolearn before the
next session??
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1What is the best price for your product offering?
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Determining pricing methods ?
****
In groups of 3 – 4 brainstorm times:
Share with your team members:
What method you used to determine your pricing
Give a name to each method
Create a list of different methods
* Time: 10 minutes
* Pick one person to read your methods to the class
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Debriefing questions
What is the perceived value of the product?
What is the perceived value of different features?
What does the product cost?
What do different features cost?
What is the customers budget?
How much money does the customer have?
How unique is the product or service?
What is the customer ROI?
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Cost pricing 1
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Cost pricing
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SkimPricing 2
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Skim pricing
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Loss leader3
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Loss leader pricing
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Market-orientedpricing 4
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What are the competitors charging?
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Penetration Pricing5
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Penetration pricing
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Premium Pricing6
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Premium pricing
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Premium pricing
90,000 is that tractors price if it is only equivalent to competitors tractor
7,000 is price premium for Caterpillar’s superior durability 6,000 is the price premium for Caterpillar’s superior
reliability 5,000 is the price premium for Caterpillar’s superior
service 2,000 is the price premium for caterpillars longer
warranty on parts 110,000 is the normal price to cover Caterpillar’s superior
value -10,000 discount -------------100,000 final price
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Contribution Margin-based Pricing7
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Contribution margin based pricing
Price
Profit
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Pay what you want8
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Radiohead “pay want you want”
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Freedium9
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Freeduim – Upgrade model
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Freeduim – Advertising model
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? What pricing strategy will you use?