Pricing Your Product: Setting the Sale Price

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    18-Dec-2014

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This PowerPoint was presented by James Matson at the 2012 Local Foods Network Workshop: Taking the Product to Market in Spencer Virginia. In his presentation, Matson explores how to develop a pricing strategy that is right for your business.

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<ul><li> 1. PRICING YOUR PRODUCT: SETTING THE SALE PRICE October 18, 2012 Local Foods Network James Matson Agribusiness/Marketing Consultant </li> <li> 2. October 18, 2012 Local Foods Network Work Shop Matson Consulting JAMES MATSON </li> <li> 3. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICING YOUR PRODUCT Developing a pricing strategy can be a long drawn out affair. We can even skip lunch to learn about all the processes. Or </li> <li> 4. October 18, 2012 Local Foods Network Work Shop Matson Consulting WHAT IS FAIR PRICING? We can determine what is fair pricing. What is fair pricing? Whatever the market will bear. </li> <li> 5. Matson Consulting THE END! </li> <li> 6. October 18, 2012 Local Foods Network Work Shop Matson Consulting SORRY NOT YET Sorry, there is a bit more to fair pricing than that. But dont forget. Whatever the market will BEAR! </li> <li> 7. October 18, 2012 Local Foods Network Work Shop Matson Consulting WHAT IS FAIR PRICING? So, how do we determine how much the market can BARE? </li> <li> 8. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICING STRATEGIES Multiple pricing strategies can be employed to find the right price for your goods. Here are some examples. </li> <li> 9. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICING STRATEGIES $0.50 to grow $0.25 to sell Contribution Pricing is determining how much it costs to bring the good to market then adding a margin. $0.75 + Margin </li> <li> 10. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICING STRATEGIES Penetration Pricing offers a low price to get exposure and gain wide acceptance quickly. </li> <li> 11. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICING STRATEGIES Skimming The Market is to introduce the product at a high price for affluent customers only. It causes low volume and high margins which can effect your company in negative ways. </li> <li> 12. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICING STRATEGIES Psychological Prices are emotionally satisfying to the customer. It is most efficient when you are selling directly to the consumer. </li> <li> 13. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICING STRATEGIES Competitive Pricing is to find out what competitors are selling at, then match or undercut. Credit: http://mytechandspace.blogspot.com/ </li> <li> 14. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICING STRATEGIES Differentiated Pricing is to take different prices for the same product in different situations. </li> <li> 15. October 18, 2012 Local Foods Network Work Shop Matson Consulting DIAMOND WATER PARADOX Water Diamonds </li> <li> 16. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICING STRATEGIES Airline Pricing Model One Seat $59 Another Seat $2559 </li> <li> 17. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICE-TAKING VS PRICE-MAKING A price-taker is an individual or firm who is not influential enough to affect the price of an item. A price-maker is an individual or company which is influential enough to affect the price of an item. </li> <li> 18. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICE-TAKING VS. PRICE-MAKING We should always strive to be price-makers. To do this we need to make our products unique. This is done by making substitutes hard to find for customers. </li> <li> 19. October 18, 2012 Local Foods Network Work Shop Matson Consulting WHAT MAKES THESE APPLES DIFFERENT? </li> <li> 20. October 18, 2012 Local Foods Network Work Shop Matson Consulting PRICING AND REPRESENTING YOUR BRAND Pricing can be the best representation of your brand in the marketplace. Rolex Timex </li> <li> 21. October 18, 2012 Local Foods Network Work Shop Matson Consulting FAIR PRICING CONCLUSIONS Finding the right price is about maximizing revenue. Common sense is the always the best solution to pricing your products. </li> <li> 22. Matson Consulting Grant Writing Workshops Grant Management Assn. Developmental Activities Strategic Planning Program Evaluation Meeting Facilitation Feasibility Studies Business Plans Marketing Plans Board Training Crisis Communication Survey Design and Execution Marketing &amp; Brand Development Services Available October 18, 2012 Local Foods Network Work Shop </li> <li> 23. Matson Consulting WWW.MATSONCONSULT.COM JMATSON@MATSONCONSULT.COM 803-233-7134 Whatever the market will bear!!! </li> </ul>

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