Piaget Altiplano Watches

Designing an appropriate pricing strategy is always a challenging task for most corporations, because price is a determinative factor of operating profits. Meanwhile, price can affect customer perceptions and product development. According to the basic economic theory, pricing policy should reflect the product’s costs and the relationship between supply and demand. In addition to the fundamental framework, price settle mechanism should take into consideration the underlying industry environment. For example, pricing in manufacturing is heavily cost-based with the certainty that the costs are fully covered. And conversely, in some particular sectors, there are downsides when price setting relies solely on the variable costs because of the high fixed cost. Based on this judgment, product providers should carry different pricing mechanism under different market conditions. Accordingly, pricing evolves from a purely academic topic related to the economic theories to a profits-maximising instrument involved with marketing practices. All these issues make the price setting problem more

In this assignment, pricing strategy for backpack will be discussed. After estimation of product’s cost, demand and mark up, we have to decide an appropriate pricing strategy for setting a base price for our backpack (Lamb etal. 2016). The alternative strategies for the backpack which would be discussed is price skimming and penetration strategy. Firms benefit from price skimming from high profit margin, perceived high quality and attract customers when price lowered, while it’s more applicable with inelastic demand, also attract competitors and having difficulty in adjusting appropriate time to lower the price. Penetration strategy brought positive effects such as low input cost, and it is suitable for elastic demand product. However, might result bankruptcy if company unable to survive in the beginning, it require long period for returns and low price might be tagged with low quality. The chosen strategy for backpack is price skimming which might results better effect on our targeted segment because outdoor enthusiasts aimed at high quality.

This is a strategy that can apply to products with consumable supplies. This is where the pricing at high prestige levels, otherwise they will not sell; customers equate higher quality with higher prices.

Talia open and closed the pocket watch. Opened, close, reopened, closed. The metal had grown warm in her hands, and the clicking sound it made made had started to dull. The pastor continued to drone on about her father. What a good man he was, and what a great loss it was to their community. She smiled bitterly. Not many people had actually liked him. One could only describe her father as guarded. She pulled the sleeves on her sweater back over her wrists and tried to tune in for a bit. She eventually gave up and went back to opening and closing the pocket watch. It seemed that no one else could hear it snapping shut. She shook her head. It wasn’t like they were actually mourning, after meeting her father for the first time people in this

A fashionable cover costs more to manufacture, but we believe that it should be priced higher not only because of manufacturing cost, but also due to our target customers’ higher willingness to pay. We believe the premium for fashion ability should be set at $20.00 USD above the Walmart pricing because it would be effective at establishing the point of differentiation with customers based on price. We want to differentiate our product from other products, and the way we are choosing to do that is by having it as a price premium. The higher price sets a perceived level of esteem to our product in the consumer’s mind, and that is exactly what we want. However, if we set the price too unreasonably high, nobody will purchase our product. We want

I close my eyes. I wake up on the cool cobblestone street. Raindrops break their fall in dark untidy tufts of my hair. There is something in my pocket.

The prices should reflect what a consumer is willing to pay. For an example, the EPI pens, which is a life saving device for many people with severe allergies including myself. The public and many politicians have recently been outraged by the high cost of the Epi-Pens. Contemplate in purchasing one for myself because, of the marked-up price of the Epi-pens, and since it has been rise about 25% per year for nearly a decade. Even though the officially is offering a generic brand one that would lower the price and, one might expected it to be at an affordable drug to all consumers. The fact is, people are refusing to buy them at their new prices, although many people are at risk of being without a life saving drug. But the, demand is designed

Costs play an important role in setting international prices. Travelers abroad are often surprised to find that goods that are relatively inexpensive at home may carry outrageously higher price tags in other countries. Besides, such price escalation may result from differences in selling strategies or market conditions. In most instances, however, it is simply a result of the higher costs of selling in foreign markets such as the additional costs of modifying and packaging the product, higher shipping and insurance costs, import tariffs and taxes, costs associated with exchange rate fluctuations and higher channel and physical distribution costs. Futhermore, Milo also adopted Promotional Pricing strategy. Selling products is challenging when shelves are lined with similar-quality products, and customers are bombarded with advertising messages. Promotional pricing helps differentiate Milo’s product with its competitor and leverage a potential customer's attention long enough to purchase the Milo products. Promotional pricing involves lowering the price of a product, distributing coupons or offering specials, such as buy-one-get-one-free offers. For example, Milo offer promotional pricing for its product in weekly catalogue to create excitement and a sense of

The issue of convenience has been a large component in the development of early devices. The first popular activity monitoring devices—Fitbit, Jawbone, Apple Watch, Samsung Gear—had one common feature: they are worn on the wrist. Smartwatches are worn in a conspicuous location on the body and are accessed through natural gestures. (Sazonov 34)

The notion of our concept is to change the ways in which prices are perceived by customers while maintaining the same quality products. The goal here is to offer products that are a bit more expensive but within the dollar range from our competitors. More specifically, for a same sized item sold at the dollar store, Reed will be charging a higher price for our product, but within a one-dollar range. For the same product in a smaller size than the dollar store item, Reed will be charging the same price. To illustrate this point, take for instance, a 300-mL ketchup bottle sold at the dollar store for $1. That same product will be sold at Reed for $1.30 or alternatively, $1.00 for a 200-mL bottle. Another adjustment Reed can adopt is to price products in a way that the tens decimal place is moved down. So instead of charging the regular $2.25, we can charge $2.19 before taxes. The figures vary slightly and are fairly hard to detect. As a result, the price differences become negligible and easy to for customers to disregard.

High-end watches fetch top dollars in the market. They ooze elegance, wealth, and class. A watch reflects the personal style taste and character hence they are more than just utility. the questions that always comes to mind is, "Where and how can I sell my watch conveniently?".

The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.

Most buyers use the product in the same way and thus incur low switching costs. This generally means buyers purchase large quantities and have significant bargaining power. However if a business is overly aggressive in cutting price without increasing sales, profits will decrease. Low cost methods are easily imitated so it is important to remain focused upon additional features that may add value. Also monitor the buyer’s sensitivity to the price and how the product is used to ensure they have not changed. Continually evaluate how technological breakthrough may allow competitors to reduce costs.

Customers in STORY’s target segment value design and social influence highly, and are willing to purchase uniquely designed products without regard for price. However, the current retail prices of $649 and $699 for Ash and Walnut represent a cost-plus strategy. On the Kickstarter page, the company specified, “the difference is because walnut wood has a different production price than ash” (Kickstarter, 2017). For a specialty product with advanced technology and an aesthetic design, a value-based price is more appropriate. The price for both models will be set at $699, as this price represents the product’s value to consumers more accurately. Since $699 is a relatively high price in the overall market, STORY is using a price skimming strategy. This strategy is most effective because the technology used in the product is expensive to manufacture, making the contribution margin per unit relatively low. Additionally, demand for the product is inelastic, making a price skimming strategy the most effective.

The target market of Hublot aims to the young entrepreneurs at the age of 25~45. Compared with other luxury watches consumers, those entrepreneurs are younger, and they prefer the sense of future plans. At the same time, they are the generations of the “Internet”. Take the USA and China for example, most Internet users are 20~40 years old. The are more likely to accept the creative products rather than the historical classic ones, and they are believed to be influenced by the information on the Internet much easier.