How much should you charge for your products and services? Traditionally, businesses have answered this question based on the cost to produce or provide their goods and services. This course shows you the economic factors behind pricing based on cost and the pros and cons of a cost-based pricing approach. Developed at the Darden School of Business at the University of Virginia, and led by top-ranked Darden faculty and Boston Consulting Group global pricing experts, the course provides the practical and research-based models and methods you need to set prices that maximize your profits.
By the end of this course, you’ll be able to:
–Apply knowledge of basic economics to make better pricing decisions
–Recognize opportunities for price discrimination—selling the same product at different prices to different buyers—and recommend strategies to maximize sales and profits
–Calculate three types of price elasticities to determine the impact of price on demand
–Analyze and apply different pricing models
-Marginal cost-plus pricing
–Evaluate the impact of channel intermediaries and customer lifetime value on pricing