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The Art of Pricing

This document discusses various customer-centric pricing strategies including differential pricing, versioning, bundling, leasing, and segmenting customers into different price groups. It emphasizes empowering the sales force to use discounts strategically to upsell customers and target pricing based on customer characteristics and market conditions to find hidden profits.

Uploaded by

Atef Mohsen El-Bassiony
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© © All Rights Reserved
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491 views1 page

The Art of Pricing

This document discusses various customer-centric pricing strategies including differential pricing, versioning, bundling, leasing, and segmenting customers into different price groups. It emphasizes empowering the sales force to use discounts strategically to upsell customers and target pricing based on customer characteristics and market conditions to find hidden profits.

Uploaded by

Atef Mohsen El-Bassiony
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Customer characteristics

Hurdles
Empower sales force
Quantity Differential pricing = same products to Use discounts to up-sell customers
Distribution different customers at different pricing Hidden Profits More than a number, a series of integrated
Mixed Bundle strategies
Negotiation Price in mind for more customers to benefit

Al la cart Info + small changes = profits


More is better Employees can make big differences, giving a coupon
Less: service, quantity, quality Provide guidelines to cut pricing
Versioning = similar products to Culture of pricing
Add or subtract features Fix unprofitable promotions
different customers at different prices
Expedited service Fix unprofitable promotions
Avid the wait Reward the right customers
Uncertainty
Enhanced service
Interval, smaller increments It's all about value Insurance
Bundling Financing
The Art of Pricing
Leasing
Prepaid Lessens from an auction Value in the eye of beholder
Rental
Segment = multi price strategy
2 part pricing Price and availability of substitutes What competitors are charging?
Hurdles: must be there at a certain time Brand
Payment plans Convenience

Payment plans Quality


Characteristics relative to competitors
All you can eat Attributes
Service

Nine and zero: $7.99


Value Decoder Style

Payments to promote satisfaction: health clubs Income How much does your customer make?
Prestige pricing: absolute Price/Strength of demand for related products Other goods affect value

Anchor pricing: tend to use brand as typical price fad


Marketing Finishing touches new information
Quantity suggestive pricing
Market environment Changes that affect value:
event,
Large vs. small losses: eight easy payments
timing
Stuffing the bundle to convey value Derived from The Art of Pricing: How to Find the Hidden
Everyone loves a bargain Profits to Grow Your Business by Rafi Mohammed Title The Art of Pricing Author Date 10/31/2014

File The Art of Pricing.twdx Company

Friday, October 31, 2014

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