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Chapter 7: Pricing Strategy for Fingerprint Recognition Payment - Coggle…
Chapter 7: Pricing Strategy for Fingerprint Recognition Payment
The ideal price of service is one that is both acceptable to buyer and seller.
We sells the recognition system machine to the shop seller in everywhere to make it accessible to everyone.
Machine price: RM 2000
Maintenance fee: free of charge
Every user of this system need to pay for the registration fee and yearly member fee for the following years.
Registration fee: RM 25
Member fee: RM10/ year
Application download fee: free of charge
How do you determine the pricing for your product?
Analysing Costs and Overhead
Maintenance fee
Slotting fee
Advertising fee
Utilities fee
Evaluate product's uniqueness
Biometric autherication
Save time
More secure
Understand product price elasticity
Take market research to determine either the demand of product changes significantly or not while there have a slight changes in price.
Select the distribution channels
Online marketing. Advertising online to promote this new application to target audience.
Stage in Product Lifecycle
Adjust the price base on product lifecycle.
Introduction stage- First introduce of products, offer to early birds who register to the system.
Growth Stage- Maintain the price which is RM 15/ year, but we provide some benefits to them, to attract them for continually used it.
Decline stage - At this stage, our profits decrease or eventually disappear.
Maturity stage - We maintain the price but can spend some costs to improve the system (More function)
Estimating sales at different price
Calculate all the costs to produce the fingerprint recognition system (Cost and overhead, wages and salary, maintenance fee etc)
Analyse the competitors and their pricing strategy
Set the price that can cover all the costs
Set the price that can cover the costs
Analyse size and composition of target market
evaluate the target market segmentation
do market research to evaluate competitor's strengths and weakness
Determine the type of pricing for you product
Dynamic Pricing
The price may vary depending upon the type of customer
Member of fingerprint recognition system get more member points when using this system to paid
Get more rewards, discount or boucher than non-member
The member point can use to claim rewards