When should a company initiate a price change

11
DEVELOPING PRICING STRATEGY AND PROGRAMS Part 4

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Transcript of When should a company initiate a price change

Page 1: When should a company initiate a price change

DEVELOPING PRICING STRATEGY AND PROGRAMSPart

4

Page 2: When should a company initiate a price change

When should a company initiate a price change

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Initiating a price cut

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When Excess plant capacity

Drive to dominate the marketthrough lower costs

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Possible trap in price cut

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Possible trap in price cut

Low quality trap

Fragile market share trap

Shallow pocket trap

Price war trap

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Initiating a price increase

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Reasons for increase

Cost inflation

Over demand

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Ways to Initiating a price increase

Delayed quotation pricing Escalator clauses Unbundling

Reduction of discounts

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Disclaimer

Created by Khemendra Raj Pingoliya, IIT Kanpur during an internship

by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com

http://www.iiminternship.com/
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