How to price a product effectively

PRICING Maxwell Ranasinghe B.Sc. ( Business Administration) Hons. MAAT, Attorney at Law, CPM ( New Haven- USA)

PRICING ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Pricing the revenue maker ,[object Object],[object Object]

Role and importance of pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Pricing Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Factors to be considered in pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Pricing should be in line with other elements of the marketing mix ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Concepts of Setting Prices ,[object Object],[object Object],[object Object]

Concepts of costing for pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object]

Costing Formulas ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Cost and Prices ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Variable cost Production - Units Cloths meter p/u Price Per meter Variable Cost 0 1.5 10 0 1000 1.5 10 15000 2500 1.5 10 37500 5000 1.5 10 75000 6250 1.5 10 93750

Fixed Cost Units produced Fixed cost- e.g. rent Total Fixed cost 0 100000 100000 1000 100000 100000 2500 100000 100000 5000 100000 100000 6250 100000 100000

Total Cost & Income Units produced Variable Cost- VC @ 15 per unit Fixed cost –FC Total Cost VC+FC Total Income Selling Price Rs. 40.00 0 0 100000 100000 0 1000 15000 100000 115000 40000 2500 37500 100000 137500 100000 5000 75000 100000 175000 200000 6250 93750 100000 193750 250000

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Pricing Strategies ,[object Object],[object Object],[object Object]

Cost or Company Oriented Pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object]

Margin on sales ,[object Object],[object Object],[object Object],[object Object],[object Object]

Customer Oriented Pricing Strategy ,[object Object],[object Object],[object Object]

[object Object],[object Object]

Competitor Oriented Pricing ,[object Object],[object Object]

Setting the final pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object]

How to price a product effectively

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How to price a product effectively