Increasing Revenue with Advanced Pricing Strategies
In This Chapter
Using elasticity to determine price
Basing price on cost
Selling the same good at different prices
Bundling goods for a bundle of profit
Pricing for competitive wars
You’ve probably seen the game show The Price Is Right. In the show, contestants are shown a product and asked to guess its price. The contestant who guesses closest to the actual retail price without going over is declared the winner.
The question of the right price is crucial in business decision-making. The price marked on a product isn’t necessarily the right price. As a consumer, I tend to think that most prices are wrong — they’re way too high. For a business losing money, the price probably seems way too low. Before deciding whether or not a price is right, you need to know what your goal is.
Throughout this book, I emphasize various methods to determine price. In this chapter, I introduce more advance pricing techniques. I start by ...