Price

Pricing Strategy Matrix

Pricing Strategy Matrix


How to Set the Price

  • Selecting the Price Objective - Position of market offering due to survival, maximum current profit, maximum market share or maximum market-skimming pricing.
  • Determining Demand - Price Sensitivity - methods include surveys, price experiments and statistical analysis.
  • Estimating Costs - Charging a price based on cost of producing, distributing and selling of a product.
  • Analyzing competitors' costs, prices & offers
  • Selecting a price method: for e.g. markup pricing, target return pricing, value pricing.



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