FP&A - Financial Planning and Analysis

1.  Pricing Strategies

Posted 7 days ago
What are different pricing strategies and how do they affect a successful new product?

Your attention to this matter is greatly appreciated.

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Sarah Charles
United States
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2.  RE: Pricing Strategies

Posted 6 days ago
Hi

You have raised three issues in your question:

1.What is Price and Pricing.

2.What are Strategies or what is a strategy.

3.Impact of Pricing strategies on a new product.

Price is normally assumed as realisation in monetary terms such as Dollar for a unit of the product Sold.
Pricing is a determinant of price for a product under sale either at a single go or for a period of sale.
Strategy is the course taken or likely to be taken or a guide to action towards an evolving environment that often focus on sustenance and growth endeavor.
Pricing strategies are those that allow the product to steer clear of competition to stay in market and trade volumes for a longer period.

A new product is one that is brought new before the customers or market which has a original introduction, a efficient variant, an evolving product that generates use esteem exchange and Cost Value.
A successful new product is one that is already in the market that is pushy because it is enhancing any or all of the above referred four dimensions of value.
Price is an exchange value for a product and for a new product is a sensitive determinant and if the new product is already successful then price bears on its sustenance at least equally on the four value parameters indicators.

There are pricing models for new product beginning

Promotional

Penetrative

predatory

cost recovery

competitive

and so on and so forth

But the fundamental that drives the product has a bearing on the pricing strategy to be adopted depending on the emerging and evolving enviroment.

Total cost , life cycle cost all have bearing on the product pricing depending on product life cycle.

Sensitivity to price has to be tested and retested for product sustenance in an evolving enviroment.

Regards

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R. Iyengar CMA, FCMA,FIPA,CPFA,CMA,FFA
Finance
Service
MUMBAI
India
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