Strategic Pricing for the Luxury Market

Overview

The moment you create something, a new service or product, you will need to decide how much you are going to charge for it. As such, pricing is an immensely important topic. Pricing tactics and strategies are important to enable you to maximise profits.

Unfortunately, many of us are unaware of the latest developments and breakthroughs on understanding human psychology and decision making which can significantly influence pricing decisions.

What you will learn

The purpose of this one-day course is to prepare participants to address strategic and tactical pricing across a wide range of pricing practices.

Participants will learn how to choose prices based on their strategic planning, customer psychology, intended brand, competitors and marketing strategies.

It is ideal for product managers, high level managers, management consultants, entrepreneurs and the self-employed who offer their products and services directly to customers.

Details

Align your pricing strategy with your market

Most successful business people are busy developing their ideas into useful products or services and a pricing strategy can sometimes take a back seat or become an afterthought, rather than part of the overall business strategy.

Quite often business owners are worried about pricing themselves out of the market, in some cases they overestimate market tolerance and place their prices too high. This course aims to efficiently provide a set of handy tools and proven guidelines to help participants align their pricing strategy within their market.

The course answers questions such as: How do you determine a price for a product? What is high-low pricing strategy? How would you know if the current price is suitable? How should you respond to competitors when they change their prices? What is segmentation strategy? How can you influence customer behaviour to boost profits?

The course uses examples and case studies to illustrate key points and examines real-world examples from some of the most successful corporations in the world.

The course uses the research, discuss and implement learning approach rather than the more usual lecture based approach.  

Strategic Objectives

• Tactical pricingvs strategic pricing
• Understanding price elasticity
• Understanding and using segmentationto increase profits
• Relationships between strategic pricing and strategic planning

Pricing Strategies

• Commonly used pricing strategies
• Advantages and usages of each strategy

Presenting Products & Prices

• Determining the correct price
• Taking advantage of bundling strategies
• Using price to influence behaviour
• Understanding contextual pricing
• Understanding price psychology
• Using A/B testing

Systematic Biases

• Systematic biases and how they apply to pricing
• Using anchoring and priming to influence customers
• Understanding prospect theoryand how it relates to pricing and decision making

Displaying Prices

• Display strategies for pricing
• Applying psychological pricing
• Reframing prices to boost sales
• Using analogies to illustrate your prices
• Strategies to effectively display low or high prices
• Understanding how to use a pricing mediumand how it can it help
• Making discounts or vouchers more appealing by changing how they are displayed

Changing Prices

• Understanding Weber’s law
• Understanding comparative selling
• Effective strategies when discounting
• What to consider when changing prices