I just finished the reading and the test for chapter 18, Setting the Right Price. These were all new concepts to me, I had never heard of price skimming before, and it makes sense to differentiate between the benefits and circumstances of that vs. penetration pricing, or status quo pricing. Each one has its place. I can't help but think about the introduction of the iphone and the high prices we were paying then - and gladly. My daughter and I stood in line for 2 hours to get one of the limited number that was shipped to Logan for that product launch. We gladly paid the $800 approx. for it - and today my friend was able to buy one for $199. A perceived shortage driving the price up, or was it that the manufacture of them during start up was more costly and that evened out over the last several years? I can see the flow on both scenarios though. And it makes sense to me now. I really related to the example of Parker Hannifen and former pricing at cost plus, vs their new strategy of segmenting products based on demand and pricing for affordability on some, while pricing higher on others due to market demand and perceived higher value. Very smart. This is something I will use when pricing conference management services. Base price vs. value added services. Thanks for this.
I really appreciated the glimse into unfair or illegal practices too and the laws that govern that. I had heard of price fixing but I had never heard of predatory pricing or price discrimination. I can see how these regulations are needed to protect the public and also smaller retailers from unfair practices. I find that I was actually pretty naive when it comes to what is legal vs. illegal in pricing. And I really liked the info on odd-even pricing (psychological pricing). I had not considered that putting something at a whole even value could give it the perception of higher quality. I'll use that too.
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