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PRODUCT PRICING (PARTIALLY AUTOMATIVE BICYCLE), Muhammad Faiz Jafni Tam…
PRODUCT PRICING
(PARTIALLY AUTOMATIVE BICYCLE)
Ideal Price to Both Buyer & Seller
Seller
Main objective is maximum profit and sales.
Ensure that the bicycle price is not eat others product's sales.
Buyer
Main objective is maximum benefits. (e.g. value of product and the price from another competitors)
Estimate price range
Reference price
RM 1,500.00
Differential factor and value
Positive
Two use (RM500)
Manually cycling
Automatically cycling
More safety (RM 800)
Newest design of Tire
High Tech of Break system
Newest Design (RM400)
Negative
Need to charge (RM1000)
Final price rage (RM2,200.00)
The Type of Pricing
Premium
: strategy of consistently pricing at, or near, the high end of the possible price range to help attract status-conscious consumers.
high price is an indication of good quality
As a sign of social status; the buyer is a member of an exclusive group
The cost of product malfunction is too high to buy anything but the best
Determining Pricing
Product Uniqueness
Competitive Advantages
that Make the Value Difference
to the Competitors
Unique Attributes
Partially Automated Bicycle (Group 2)
Maximum Performance
Very User Friendly
Limitless on Lifespan (2 in 1)
Very Practically and Nicely Design
Safety is Guaranteed!
Full Electric Bicycle (Xiaomi, Huawei)
Limitation on Lifespan (Rechargeable)
Fragile
Not Affordable
Bicycle (BMX, Raleigh)
Energy consuming
Minimum Performance
User-Friendly
Product Price Elasticity
If demand for the product or service changes significantly with slight changes in price, the product category is considered to be elastic with respect to price.
the bicycle is an elastic goods because there are substitute product similar with this bicycle.
if the bicycle increase price by 10%, the demand of the bicycle decrease by 10%
Distribution Channel
provide the lowest possible cost
ensure our bicycle enter the market even though there are competitors
our company will make sufficient margin after paying the distribution channel fee.
ensure distribution channels are able to provide adequate sales volume to meet objectives
ensure the Channel is committed to our bicycle and will fulfill its financial commitments to our company.
Muhammad Faiz Jafni
Tam Yi Ting
Nurul Farah Syuhada
Nor Suhaizi
Deedat