1 Teck H. Ho October 7, 2003 Takeaways I. Economic and Behavioral Foundations of Pricing II. Power Pricing Concepts

2 Teck H. Ho October 7, 2003 The Eight Takeaways  EVC (Is the price too high?)  The breakeven analysis and curve (Should a price change be implemented?)  Four strategic principles (1. knowing your opponents, 2. one-time vs. repeated Interaction, 3) develop strategic foresight, and 4) unify your minds to promotion cooperation)  Reference price

3 Teck H. Ho October 7, 2003 The Eight Takeaways  Pricing scorecard and price structure  Customize, customize, customize (customer, location, product design, quantity, and time)  Customer vs. product margin (product line pricing, lost leader)  Understand both the short-term and long-term implications of price change