1. B OOST Y OUR B OTTOM L INE BY T AKING THE G UESSWORK O UT OF P RICING – A LISON S TEIN W ELLNER Present by: Mark Power Stephy Ma Chantelle Herburger

2. D O YOU KNOW HOW MUCH YOUR PRODUCT IS REALLY WORTH ? Price Tag = Most important number Assessing Value: Objective Value: most that you could rationally charge Least you could rationally charge would be the incremental cost of production Perceived Cost: what a person actually is willing to spend.

3. B ASING P RICES Base their prices on their costs, adding in a certain profit margin Looking at competitors prices Consult with customer Salespeople reports on price Base on the value that a product or service provides Ask yourself: How much would a rational consumer be willing to pay for your product, assuming the consumer had a perfect understanding of its actual worth. Think through the benefits of your product Wrong WayCorrect Way

4. C ONSUMER B ELIEFS Greatest influence Consumer believes price is fair Context & Expectation Drive up price Example: we expect to pay more for a drink at a fancy resort then we do at a hometown bar.

5. D OGFISH H EAD C RAFT B REWERY Sam Calagione, President Master at playing with pricing expectations Approach to pricing Compares his beer to fine wines Smart packaging 4 beers/ case instead of 6 Beer in corked wine bottles “We’re not a commodity. By not satisfying demand initially, we create more demand for the future.” –Sam Calagione People understand that a scarce product commands a higher price

6. I NCREASE P RICE Why Business wont take you seriously if price is to low Have an unsteady business chasing work How Company cite the reason to justify price Communication Skills among existing clients Eliminate discounts Charge for add-ons Redesign or relaunch your product/businessrelaunch business

7. W ORK C ITED Article: Wellner, Alison. "Boost your bottom line by taking the guesswork out of pricing." Do you know how much your product is really worth? 27(2005): www. dogfish.com http://www.wirelessestimator.com/wifi/images/up loads/Increase%20Pricing.gif http://www1.istockphoto.com/file_thumbview_app rove/504703/2/istockphoto_504703_isolated_vecto r_price_tag.jpg