Embed Size (px)
Citation preview
The Science of StartSession 5: Pricing strategies
paulshawsmithscientific business strategy
paulshawsmithscientific business strategy
What do you need tolearn before the
next session??
paulshawsmithscientific business strategy
1What is the best price for your product offering?
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
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?
paulshawsmithscientific business strategy
Cost pricing 1
Cost pricing
paulshawsmithscientific business strategy
SkimPricing 2
Skim pricing
paulshawsmithscientific business strategy
Loss leader3
Loss leader pricing
paulshawsmithscientific business strategy
Market-orientedpricing 4
What are the competitors charging?
paulshawsmithscientific business strategy
Penetration Pricing5
Penetration pricing
paulshawsmithscientific business strategy
Premium Pricing6
Premium pricing
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
paulshawsmithscientific business strategy
Contribution Margin-based Pricing7
Contribution margin based pricing
Price
Profit
paulshawsmithscientific business strategy
Pay what you want8
Radiohead “pay want you want”
paulshawsmithscientific business strategy
Freedium9
Freeduim – Upgrade model
Freeduim – Advertising model
paulshawsmithscientific business strategy
? What pricing strategy will you use?
