Pricing Fun
July 11th, 2022
- Pick a product/service within an industry.
- Identify a low-tier, mid-tier, and high-tier solution in that industry.
- Identify the approximate price point for each tier.
- Justify the price at each tier, and the reason for the differences between the prices.
- Explore what customers expect and how they act at each tier.
- Then, propose a new solution for that industry.
- Identify the price tier (approximately) for your new solution.
- Walkthrough the following transactional costs for that solution:
- Search costs (finding buyers, sellers)
- Information costs (learning)
- Bargaining costs (transacting, communicating, negotiating)
- Decision costs
- Policing costs (monitoring cheating)
- Enforcement costs (remedying)