Innovative Pricing Strategies to Increase Profits
- 2h 8m
- Daniel Marburger
- Business Expert Press
- 2012
According to the economic theory of the firm, businesses strive to determine the single price that maximizes profits. In fact, many firms can extract more revenue and increase profits with pricing strategies that are far more innovative than the single-price strategy. However, in the world of pricing, there is no 'one size fits all' strategy. Some pricing strategies are better suited to some situations than others. Sam's Clubs, owned by WalMart Stores, Inc., for example, charge a membership fee for the right to purchase the store's inventory whereas WalMart Supercenters do not. If Suddenlink Communications bundles Internet, cable, and phone service to increase profits, why does it also sell the same items separately? Is it true that passengers seated next to each other on the same flight might pay dramatically different fares? This book summarizes various pricing strategies, including price discrimination, two-part tariffs, bundling, peak-load pricing, and dynamic pricing and explains the necessary ingredients that cause them to succeed or fail.
In this Book
-
Economics and the Business Manager
-
Consumer Behavior: The Law of Demand and Its Effect on Pricing
-
Understanding the Price Sensitivity of Buyers
-
One Perfect Price: Profit Maximization for the Single Price Firm
-
If You Could Read My Mind: First-Degree Price Discrimination Strategies
-
Allowing Buyers to Self-Select By Willingness to Pay: Second-Degree Price Discrimination Strategies
-
Segmenting Your Market Based on Willingness to Pay: Third-Degree Price Discrimination Strategies
-
Dynamic Pricing and E-Commerce
-
Legal and Ethical Issues
-
Table of Strategies
-
Notes
