TABLE OF CONTENTS

• What is Price?
• Pricing Strategy
– Cost Based Pricing
– Demand Based Pricing
– Competition Based Pricing
• How to Price?
 WHAT IS PRICE?
• Definition of Price:
• The amount of money charged for a product or
service

• Examples of “Price?”
– Tuition, rent, etc…

Price = Cost + Profit

 PRICING STRATEGY

① Cost based pricing

② Demand based pricing
③ Competition based pricing
 COST BASED PRICING

• Total Cost of Product + Profit

Margin in order to determine
cost
 DEMAND BASED PRICING

• Satisfies customers and sets

profit margin
 COMPETITION BASED PRICING

Setting your price

similar/below/above to the
competitors
 HOW TO PRICE?
• At a basic level the
main constraints on
pricing are
• the costs associated
with your offer,
• customers’ willingness
to pay and your
competition
Thanks You!