THE PRICE

IS RIGHT

NUR AFIFAH BINTI YAHYA

NUR AMNI BT AHMAD
NUR SIMA SALHAH BT BAHARUDDIN
NUR SYAFIQAH BT ROMAINOR@SYUKRI
SURAYA ATHIRA BT MD SALLEH
ORGANIZATIO
N
BACKGROUND
● Established by
Suria
Maju Resources in 2008
● Located in Ipoh, Perak
which is a strategic
location and become a
transit hub for local and
international tourists
● Well-connected by a
transportation network
including North-South
Highway and railways
● Consist of more
than 300 units of
rooms
● Provide other
facilities such as
gymnasium spa,
, rooftop
pool, infinit
children y
playroom,
convenience
store and dining
outlets
EVENT FACILITIES

● Meeting Rooms
● Conference
Rooms
● Private Rooms
● Ballroom
 ● How to book
● Availability
SERVICE ● Deposit and payment

PROCEDURE ●
●
Entertainment
Cancellation terms
S ● Appointment
procedures
MANJONG COMMUNITY RUBY CARE SDN
ANNIVERSARY BHD, ONE-DAY
DINNER SEMINAR
The price is calculated The price is based on
based on a customized hotel standard
package prepared by packages which
the event team in include all the charges
accordance with client’s or expenses involved
needs on seminar date
 SWOT
ANALYSI
S
 OFFER VARIOUS SERVICES STRONG
EM PLOYEE ATTITUDE

S
Sri Suria Hotel also offered on-site Employee follow the procedures and
event facilities. guidlines established in order to
perform the services with potential
2500 sq. ft of function guests.

spaces other event Effective management of

the company
equipments

 M ay gain
competitive
advantage.

 Offer good
impression
towards the hotel.
 LACK OF M ANAGERIAL TALENT

W Sri Suria Hotel gained

minimal
through
profit margin
the event
management activities

Only see the flaws when

the BOD voice his
concern

The existing practice

does Manjong
not well Ruby Care Sdn Market Average
analysed
Community Bhd
11.89 % 23.50 % 30 %
O
STRATEGIC
LOCATION
Near a transit hub
Well connected by a transportation network
 North - South Highway
 Railways

END USER FEEDBACK

Guest willing to give feedback

To measure guest satisfaction and

to
improve the services offered
 T
LARGE GROWTH OF
COMPETITOR INTERNET

A platform for guest to

Competitor may have their perform greater price
own added value scrutiny

Offer promotion A hotel search engine which

Gain customer loyalty and
repeat the services
compare
the prices easily
Disadvantage if they have no
strategy on prices and online
marketing
Issue 1 : Low profit A low profit margin means the business is not
efficiently converting revenue into profit. This

margin
In this case, the company does not apply
scenario could result from:

‘markup pricing’ or does not impose any

charges for decorations to their guests. Excessively high
This can be identified in Table 3 where cost of goods sold
Prices that
or operating
both total cost and total price was are too
expenses
RM3,600. low

Sri Suria Hotel get profit below half of the

price charge (lower pricing, high costing).
• E.g.: Carpark for Manjong Community
and AV Equipment for Ruby Care Sdn
Bhd only got 30% profit from the price
while the cost to price is 70%.
RECOMMENDATION
Get feedback from customers to
S Plan the staffing accordingly by
measure the level of their satisfaction

M ake improvement to attract

hiring a hard-working and wiling-to-
new customers with greater
learn staff
confidence

Use Control Reduce Keep

M arkup Labour The Use of Valued
Pricing Costs CCTV Customers

Put markup on decoration costs as a Reduce the car park costs by

'services charge' for their time spent reducing CCTV and replace with
and other costs involved more lighting (Note 5)
 COSTING
THEORY
 COST COMPARISON
 TARGET COSTING
• TIED TO
COMPONENTS
• TIED TO FEATURES
COST
COMPARISON
 Sri Suria Hotel should compare between cost
from alternative technologies, cost of different
product and services and cost of same
product or services.
 They can utilize of cost information
for
exercising control.
 Example: cut unnecessary expenses.
 TARGET
1. TIED TO COMPONENTS COSTING
• Allocates the cost reduction goal
among the various service provided.
• Tends to result in incremental

2.
cost
reductions to the provided services. TIED TO FEATURES
• Usually used when a company is
simply trying to refresh an existing • Allocates the cost reduction goal
product or services with a new among various product or service
version but wants to retain the same features, which focuses attention
underlying product or service away from any product designs that
structure. may have been inherited from the
preceding model.
• Tends to achieve more radical
cost
reductions.
Issue 2: Weak Pricing
Strategy
 What is pricing strategy?
Method of pricing a business uses to determine
how much to sell their goods and services for Pricing Method

COST PLUS PRICING

 In this case, Sri Suria Hotel adopts cost- plus-
pricing method as they determine their desired
profit margin simply by ensuring that the full
cost of fulfilling the service is covered and
yield a positive rate of return.
 It is the simplest method of determining price Manjong Community Ruby Care Sdn Bhd
(Annual Dinner) (Seminar)
as it does not take into consideration of
consumer demands and competitor strategies.
What Pricing Strategy can be used by Sri Suria Hotel
(SSH) to create Competitive Advantage?
Competition-based
Pricing
• Setting a price based on
the knowledge we have
about competitors’ prices
and activities
• Focuses on information
from the market rather
than production costs and
product’s perceived
value
• Since SSH is located in Ipoh
(capital city of Perak),
there must be many hotels
that provide same services
aroundbe easier to get
- Would
competitors’ pricing
information by using online
platform
Value-based Pricing Price Skimming
• Setting a price based • Setting a high price
on how much the (with heavy promotion)
customer believes and later slowly
what you’re selling is lowering the price as
worth the market evolves
• Can maximize your • Best strategy to use when
revenue by charging trying to recover large
each customer the exact investment
amount they are willing • SSH invest a large amount
to pay of money to acquire latest
• It is important when audio visual equipment in
considering price as it is order to provide guest a
not for yourself, but perfect experience
for your target - LCD projector, projector
customers screen, PA system
• Both events conducted
by SSH
- Well had received
valued
good feedback from the
RECOMMENDATION
 Steps to implement this pricing method
1. Choose the target segment
2. Set the pricing based on customer’s willingness to pay for services
3. Analyze competitive strengths and weaknesses
Choose Value-based
Pricing Strategies

Sri Suria Hotel

 Increase the profit of the business
 Improve the quality of the services

Customer
 Enhance customer satisfaction and loyalty

BENEFITS
REFERENCES
● Hinterhuber, A., & Liozu, S. (2012). Is It Time to Rethink Your Pricing Strategy? Retrieved
from https://sloanreview.mit.edu/article/is-it-time-to-rethink-your-pricing-strategy/

● Heneghan. C. (2015). What the cost of a poor pricing strategy means. Retrieved from
https://www.fooddive.com/news/what-the-cost-of-a-poor-pricing-strategy-means/407245/

● Campbell, P. (2012) Pricing Strategy Guide: The Best Pricing Strategies With Examples. Retrieved from

https://www.google.com.my/amp/s/www.priceintelligently.com/blog/bid/163986/a-complete-guide-to-
pricing-strategy%3fhs_amp=true

● Guo, V. (2019) Cost Plus Pricing: The Pros And Cons Of A Cost Plus Pricing Strategy. Retrieved from
https://www.priceintelligently.com/blog/bid/161014/Cost-Plus-Pricing-101-The-Necessities-and-Your-

Pricing-Strategy
 Thank
You
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