1 / 7

Mastering Pricing Strategies for Entrepreneurial Success

Explore factors influencing pricing strategies from fixed costs to consumer perceptions, with approaches like cost-based and demand-based pricing. Learn techniques like psychological pricing and analyzing break-even points and markups. Discover how to revise pricing based on demand elasticity and competing on price, service, or quality.

tyler-hopkins
Download Presentation

Mastering Pricing Strategies for Entrepreneurial Success

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Entrepreneurship Mr. Bernstein Pricing Strategy, pp 230-247 October 29, 2014

  2. EntrepreneurshipMr. Bernstein Factors Affecting Price Costs – Fixed or Variable Supply and Demand Consumer Perceptions Competition What are your objectives? Return on Investment Gaining Market Share Cash Flow / Survival

  3. EntrepreneurshipMr. Bernstein Pricing Strategy Approaches Cost-Based Pricing Cost plus markup Demand-Based Pricing “What the market will bear” Competition-Based Pricing “Price Takers” Flexible or One-Price Policy What approach(es) would you use? Why?

  4. EntrepreneurshipMr. Bernstein Pricing Techniques Psychological pricing: Prestige pricing Odd/even pricing Price lining Promotional pricing Multiple Unit discounts Bundle pricing What are examples of each?

  5. EntrepreneurshipMr. Bernstein Analyzing Pricing Break-even Analysis: Number of units that must be sold to cover fixed costs Fixed Costs / (Unit Selling Price – Variable Costs) = Break-Even Point

  6. EntrepreneurshipMr. Bernstein Analyzing Pricing Markup: Amount added to the cost of an item Cost + Markup = Price Markup / Cost = Percentage Markup AKA “Gross Margin”; doesn’t include overhead costs

  7. EntrepreneurshipMr. Bernstein How often should pricing be revised? Elastic demand – revise often Do you compete primarily on price, service or quality?

More Related