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Effective Pricing

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Iterative Path
Iterative Path

Effective price management for profit.

BusinessFormation
1  sur  5
Pricing For Profit Rags Srinivasan Iterative Path
Three Components Of Effective Price Management 2. Incremental Analysis 1. Value-add to Segments Profit 3. Customer Margin Effective price management is about pricing for profit not market share Rags Srinivasan © 2009
Value-add To Segment means avoiding cost-based pricing Value-add to Segments ,[object Object]
Segmentation and Versioning – Value to different customers is different
Reference Price – Price customers are willing to pay is influenced by their reference price

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Effective Pricing

  • 1. Pricing For Profit Rags Srinivasan Iterative Path
  • 2. Three Components Of Effective Price Management 2. Incremental Analysis 1. Value-add to Segments Profit 3. Customer Margin Effective price management is about pricing for profit not market share Rags Srinivasan © 2009
  • 3.
  • 4. Segmentation and Versioning – Value to different customers is different
  • 5. Reference Price – Price customers are willing to pay is influenced by their reference price
  • 6. Price Realization – Reduce price leakages and increase pocket priceProfit Rags Srinivasan © 2009
  • 7.
  • 8. Relevant Costs –Before you make a new investment understand the incremental profit just from that – not the aggregate. Profit Rags Srinivasan © 2009
  • 9.
  • 10. Maximize total Profit per customer – Can you include complements that help maximize total profit per customer?Profit Rags Srinivasan © 2009