Transcript: $39.75 $90.25 22-30 Landscape Package Pricing Basic $32.08 $129.89 16-20k Basic $40.83 0-4k ** Ask about our Package Discounts Size $67.33 4-7k 13-16k Basic plus $52.58 Premium $25.58 $47.75 $63.10 $25.66 $19.75 Lawn Care Package Pricing Premium $99.82 1-10 $29.08 $59.58 $82.12 11-21 $15.25 Basic Plus $86.25 Size $103.75 $34.98 $37.92 7-10 10-13k $53.96 $23.95 $35.28 $72.62 $28.58 $35.99
Transcript: Barter System Price creates an image of the product/service and the firm that sells it. Price helps determine profits Return on Investment - ROI calculation used to determine the relative profitability of a product Rate of Return = Profit/Investment Market Share -firm's % of total sales created in that given market. May forgo profit to make gains somewhere else. Nintendo in 2003 wants a larger market share. Sells Game Cube for $80 less than other gaming systems. Market share grows from 19%-37%. Meeting the Competition Aim to meet Industry Leader Determine the average & stay in that area Nonprice Competiting Factors Quality or uniqueness of product Convenience of location or hours Level of Service Answer the following: Give an example of how pricing works to create a company's image. Other than pricing how does a company increase market share What are two examples of non-price competing? Put a Price on It or Name Your Price Price the value in money or it's equivalent placed on a good or service. Value - matter of anticipated satisfaction Wendy promotes through a $.99 burger.
Transcript: Price set by the perceived value to the customer Dependant on an understanding of how customers measure value- determied though observation Requires balancing many variable factors In Value Based Pricing the factors are exceedingly complicated Value to patient groups Value to Payers (CMS and Private insurers) CPT Codes the resources it took to develop and validate the test (costs of clicnal trails) laboratory charges for self-pay patients, competitors acceptance of KOLs from industry, & academia government trends Payers want to ensure they are getting cost savings from reimbursing the expensive diagnostic United HealthCare put an arrangment in place where OncotypeDX with be reimbursed a lower rate if it turned out that women with low recurrance scored went on to receive Chemo anyway Challenges/Disadvantages - additional outcome tracking requirers payers to have sifficient information systems- which may not be in place -compeittors may benefit from setting the inroads Benefits: - good to overcome initial barrier into the market - could also be used as a strategy in future development if we have a product that does not have sufficient data behind it About 1 in 8 U.S. women (just under 12%) will develop invasive breast cancer over the course of her lifetime. In 2011, an estimated 230,480 new cases of invasive breast cancer were expected to be diagnosed in women in the U.S.,1 Cost of Chemothearpy $15,000/ year (5) Tip References Most payers require new techbologies to be reviewed before setting reimburstment levels Not the ultimate decision maker or payer, but plays a key role in the purchasing decision and consideration is required to create a well rounding pricing plan This is a huge mountain CPT Codes Real Huge Case Study: Karen Greenrose, president and CEO of the American Association of Preferred Provider Organizations Value to Physicians Value Based Pricing Pay For Performance Overall cost of cancer in 2010 was 263.8 Bill (4) 102.8 Bill for direct medical 209 Bill for indirect medical (loss of productivity) 140.1 Bill for indirect due to loss of productivity from premature death Need to have a baseline understanding and acceptance of genomics – need KOLs to get there Barrier- training the physicians Current Barriers Paying for Outcomes Pay for performance could promote the adoption of personalized medicine if clinical data proves customized therapies reduce payers’ costs.3 Only 4 out of 100 patients benefit from Chemo The physical and emotional costs are severe Patient values being spared from Chemo or benefits from the confidence knowing that it is the right path for them Cost to society Greenrose was speaking from personal experience. After being diagnosed with breast cancer two years ago, she wanted to have a new test, called Oncotype Dx, that would determine her risk of having a recurrence. If the risk came out low, she probably wouldn't need chemotherapy for her small tumor, which hadn't spread beyond the breast tissue. "My insurance company refused to pay for the $3,500 test even after I appealed to them over and over again," Greenrose says. She decided to pay the cost out of pocket and found she had a low risk of a cancer relapse. That meant she probably wouldn't benefit from the chemotherapy, so she decided not to receive it. What irks her is that her insurance company would have wound up shelling out three times as much for chemotherapy, if she'd gotten it, than for the test that dissuaded her from seeking that expensive treatment. Improve quality of care, better outcomes. accurate and up-to-date patient data and sophisticated decision support tools. They will need more than just the results- decision support tools will help them use the diagnostics- added service = added value For a Personalized Diagnostic Comany... 1.http://www.breastcancer.org/symptoms/understand_bc/statistics.jsp 2. http://health.usnews.com/health-news/blogs/on-women/2009/05/18/health-reform-where-women-stand-to-gain 3.PricewaterhouseCoopers’ Health Research Institute,(2009). [The new science of personalized medicine]http://www.pwc.com/personalizedmedicine, p. 26-27. 4. Cancer facts and figures 2010 ACS Economic Analysis of Targeting Chemotherapy Using a 21-Gene RT-PCR Assay in Lymph Node-Negative, Estrogen Receptor-Positive, Early-Stage Breast Cancer J Hornberger, LE Cosler, GH Lyman Am J Manag Care. 2005; 11(5):313-324. http://www.amcp.org/data/jmcp/683-687.pdf Although in the past stacking resulted in faster processing of claims for new diagnostics However, it increases the chances of being rejected by the payer stacked cods will usually be considered out of network wich will increase the cost to patient Payers Value to Patients
Transcript: Why Jordan Pricing&Air Jordans Air Jordan Retro 5 Sales of 2013 Air Jordan Brand History Conclusion Today we told you about... Why we chose Jordan The history of the brand The pricing and sales of jordans in the US Pricing is the process of determining what a company will receive in exchange for its products. Pricing is a fundamental aspect of financial modeling. Price is the only credit generating aspect amongst the four P's(the other three P's are product promotion and place.) BY: Malachi Perez, JJ Montemayor, Trevon Weston Pricing http://www.forbes.com/sites/kurtbadenhausen/2013/02/14/how-michael-jordan-still-earns-80-million-a-year/byKurt Badenhausen http://www.kicksonfire.com/2012/08/30/air-jordan-5-grapes-2013-release/ http://sneakernews.com/tag/air-jordan-v-grape/ Bibliography "The Jordan Brand", a division of Nike, that is responsible for the vast majority of MJ’s earnings. Mr. Jordan partnered with Nike after being drafted by the Bulls out of the university of North Carolina at chapel hill in 1984 and later started the shoe company in 1987. The original five-year contract was worth $500,000 annually, plus royalties. The terms of Jordan’s current deal with Nike are a guarded secret, but his royalties now generate more than $60 million annually for Michael Jordan, according to sources."quote from Forbes.com. retro 5 grapes: will make a comeback. Last seen in 2006, then after 7 years making a comeback in 2013 has white leather, and laces, purple tongue, emerald blue jumpman with translucent clear bottoms, and ankle protective cushions on both sides of the shoe it also includes comfortable threaded foam cotton like insoles with a lace holder on the mid top of the shoe. The shoe sold for $160 in stores and made over 50,000 sales in the US. Pricing We chose Jordan because he was the BEST BASKETBALL PLAYER EVER OF ALL TIME, no contest. it has been a very popular shoe brand ever since nike started air jordan in the early 1980's the shoe company sells from teens to adults including parents.
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Transcript: Subject 1 Benny Davis Ricorey Wilson is important A person telling another person to do something at that moment. "It's very direct." High context Low context example is important High context V.S. Low context Subject 3 is here Low context
Transcript: Price Framing Option to bundle additional items into the purchase price. Examples include a free game, ear-phones/microphone, protective case, and a microfiber cleaning cloth. Price-Quality Perceptions Higher price point signals this technical superiority to consumers. Perceived Fairness Same price as the original PSP at its 2005 launch ($249). Importance of End Benefit Vita relies on the psychological drivers previously discussed, such as the unparalleled gaming experience delivered by the Vita. Casual gamers Mobile phone Strong third-party developer support PS Vita Conclusion Two price points Alternative 1: Skim Product Low Cost of Search Additional Information Strengths Technologically Advanced Strong brand recognition "Hardcore" gamer base Sony Retail network Sony Stores Bestbuy, Frys, Costco Online Sony retailers Amazon.com, eBay.com Psychological driven Competitor Pricing PlayStation’s perfect balance Price not used to gain market share Price does not restrict growth Costs are very similar to competitors PlayStation PSP and the original Nintendo DS Neutral incorporates an even mix of skimming and penetration Price Sensitivity Drivers PlayStation Vita is not looking for low volumes Priced too high and competitor will win No difficult comparison effect There is a very large threat in this market The competitive environment is not right for skimming viral marketing trade shows Pricing Marketing Mix Price sensitivity drivers: -price-framing -price-quality perceptions Weaknesses •Drivers are Psychological than Monetary •Consumer looks for; Status, Top of the line product, Lifestyle. A neutral pricing strategy • High-quality Image • ROI before competition enters • Previous experience • Motivating dealers with high mark-ups. Alternative 2: Penetration Search good 50-60% of adults aged 18-44 own or play video games, compared to fewer than 20% of adults 55+ Targeting younger consumers should result in a higher return on Sony’s marketing investment Social Media Trade Shows In-store Demonstrations Gaming contests Event Sponsors S.W.O.T. Online and retail Increasingly advanced smartphones/tablets Growing popularity of 3D technology Lackluster economy Threats Carly Berna Nick Dang Dustin Piper Nick Rathjen Siddharth Venugopal Consumer Behavior Pricing Alternatives NBCA: Nintendo 3DS Psychological Drivers Promotion Relatively high price point Previous version of PSP suffered from poor sales No monetary drivers Opportunities Neutral pricing strategy Not looking for high volumes at the sacrifice of higher profits The handheld gaming industry is not swayed by lower prices Potential customers of the PlayStation Vita are not sensitive to lower prices Competitors are not willing to retaliate to low prices Vita’s technical specifications, pricing, product photos, and game screen shots can easily be found on the internet and throughout gaming and consumer electronics magazines. Price Alternative 3: Neutral VITA - next-generation portable entertainment system PS "Vita" is not only a gaming system but also a social connectivity device. Features: 2 Analog sticks, front OLED screen and a read touch pad Motion sensors Chat on fly Augmented Reality Always On PS3 Integration Place Sony’s value communication strategy relies solely on articulating the Vita’s psychological benefits, which include: Providing the “ultimate” portable gaming experience; Providing cutting edge graphics, processing, display, and sound technology; Membership to the exclusive PlayStation Network; and The unparalleled social experience provided by the Vita’s Wi-Fi and 3G capability.
Transcript: Jennifer & Kayla the place the product is sold the target market demographics in the population financial benefits the amount of demand for the product •A pricing objective would be to get the customer to buy your project. Pricing objectives help the company to set a goal so they will be successful. What is Pricing? making sure the price is not too expensive. make sure the price is not to low, so you'll still make profit make the price reasonable/affordable Have sales often but not often enough to sell all of the product lower prices for periods of time Pricing Pricing is the act of making or setting a price for an object, arrangement, or deal How pricing affects product decisions •If the product is expensive you can have sales and advertise those sales using promotion, but if the product is cheap you will advertise the product because people will buy it if it is inexpensive. In most situations the product price is affected by where the product is placed. If you are selling your product in a place where people have a lot of or more than an average amount of money the price will raise. But if the product in a place where people cant afford it the price will go down so the customers will still buy the products. What is being priced when prices are being set for product? What is being set is the value of the product or how much the product is worth. Factors that affect a products price are... How pricing affects promotion decisions Explain Pricing Objectives Pricing affects product decisions because if a product cost a lot of money, then someone that does not have that much money would not buy it, and they would probably buy a cheaper version of that product. Place (distribution) decisions Some Characteristics of Effective Pricing
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