1. How do I price my product?

2. Pricing Price – The value in money (or equivalent) placed on a good or service. Value – based on anticipated satisfaction of consumer.

3. Pricing Objectives Profit Oriented Target Return – specific level of profit Maximize Profits – as much as possible Sales Oriented Dollar or unit sales growth – certain amt. of units or sales Growth in market share – percentage based Status quo Meeting competition - don’t rock the boat Nonprice competition – focus on other Ps

4. Pricing Strategies Skimming – selling the top (skim the cream) of a market. Fancy cell phones, high speed internet, drugs, etc…. Penetrating pricing policy – sell to the whole market at low price Introductory price – start low to attract customers. Satellite TV.

5. Other Pricing Strategies Quantity discounts Cumulative Noncumulative Seasonal discounts – beat the heat Financing Sale price Rebates

6. Other Considerations Cost - remember to consider what it will cost you to make and promote your product. Think long term Focus on your target market What kind of competition is out there? Align your pricing strategy with the other Ps