Pricing Strategy Essay

To pock a determine strategy, there are number of go taken into consideration as follows shade 1 Our pricing objectives are to maximize mart share and increase gross gross sales volume. This strategy allow for be use when TrackR is being launched into the market. We charge a fairish price in order for TrackR to be hearty in the market as quickly as possible and as well as to encourage the interest and excitement of a product. Because of the low price, we are able to refer the sales volume easily, maximize the market share and reach the economical of surmount as soon as possible. In order to boost the sales counterbalance more, we will offer promotion followed by the product launch, which will later be discussed in the later section. Eventually, we can traverse the market and create brand awareness. tincture 2 Being a monopoly of TrackR, we redeem a sole power of exacting price and quantity, further before we crop a final price, we must continue the demand. Track Rcan be classified as habitual goods for specific groups of people. While the price stay unchanged, people tend to debase more normal goods when their in spot increases and they less desirely to buy normal goods when their income falls. TrackR is price elastic inwardness consumers are responsive/ sensitive to a change in price. If we decide to annul the price of TrackR, the quantity demand will be declined. flavor 3 We too need to estimate the monetary rank associated with TrackR. all(a) be can be all overturned down into 2 categories fixed costs and variable costs. Fixed costs allow in salary, rent, PR and promotion and sales promotion, which come down to 3 million tical per month while the variable costs comprise of unit cost, shipping present and exchange rate which are 375 baht per unit.Step 4 Analyzing competitors costs, prices, and offerings. Our competitors can potentially be online retailers, for example, eBay or prevail my iPhone.TrackReBayFind my iPhonePrice ?$25 800 baht muster outCostNo additional costShipping fee + duty oblationWarranty, ServiceNo after sales serviceApple products onlyStep 5We divide our consumers into 2 segments B2B and B2C so we will use divergent strategies to different potential buyers. For B2B buyers, we will sign a contract and sell them over a large volume at a reasonable price range regarding the poem of unit obtaind. By having cost advantages over competitors as you can see on the previous slide, we are able to progress to up a barrier defend us from new entrants entering the market.On the other hand, as we aim to arrive at our objective of increasing the sales volume, we set an affordable price making it accessible to B2C consumers so we can increase the sales volume and eventually achieve economic of scale.We begin using value establish pricing approach for both buyers, which sets prices originally upon the value perceived/estimated by the consumers earlier than the costs of the product. In other words, value based pricing is a military rating of good or service gibe to how much consumers are willing to pay. We pass water done a market visual sense to see at what price consumers would like to spend. It could be somewhat arbitrary but it greatly assistances in an effective selling of product in understanding dissemble of good or service has on consumers.We then use break-even analysis, which represents a full stop at which heart and soul cost and total revenue are equal there is no loss or come on at this point. It purposely uses to determine the borderline output that must be reached in order to make a profit. It is a rough indicator of a trade activity and as well provides a high-energy view of relationships between costs, sales and profits.We also use quantity dismiss for B2B purchaser, which is an inducement offered to our potential purchasers resulting in a reduced cost per unit of goods when acquired in a greater volume. A quantity discount will be propose d to tempt our buyers to purchase in larger quantities. Step 6 Now, we have come down to a conclusion of TrackRs final price. here(predicate) are the base prices for both B2B and B2C buyers.