Differentiated Pricing
Differentiated Pricing
Differentiated Pricing
PRICES
Avilipsa Roy : 19020841173
Ayushi Vijayvargiya : 19020841175
Aarsi Kadakia : 19020841181
Prateek Laddha : 19020841190
Nawaz Sharif: 19020841184
Shivangi Gautam : 19020841198
Tushar Srivastava : 19020841210
PRICE ADAPTION STRATEGIES
Price Discounts
Promotional
&
Allowances
Pricing
Geographical Differentiated
Pricing Pricing
GEOGRAPHICAL
PRICING
The practice of modifying prices
to reflect the geographical
location of the buyer and the
associated shipping cost
COMMON GEOGRAPHICAL PRICING STRATEGIES
Freight-Absorption Pricing
Zone Pricing
HOW TO GET PAID??
Payment Total
Payment
in
in Cash Payment
Products
Example:
General Motors Corporation sold $ 12 million worth of
locomotive and diesel engines to Yugoslavia and took cash and
$4 million in Yugoslavian cutting tools as payment
BUYBACK ARRANGEMENT
Under this arrangement the exporter of capital plant or equipment buys back a
determined quantity of the output and the export price for it.( from the buyer
country ) is offset against the debt.
For e.g. the seller sells a plant,
equipment, to a company in
another country and agrees to
accept as partial payment
products manufactured with the
supplied equipment.
This is popular system of
countertrade particularly in
China and Russia.
Buy back arrangement serve as
a legal function to serve as a
means for the legal sale of
collateral but act more like a
secured loan or deposit.
RISKS INVOLVED IN BUYBACK ARRANGEMENT
For E.g.: PepsiCo sold its cola syrup to the government of the Soviet
Union for rubles and agreed to buy Russian vodka at a certain rate for sale
in the United States.
INDIRECT
DIRECT
The offset is said to be indirect when
The offset is said to be direct when the buyer requires the seller to enter
some components of the item sold are into a long term industrial or other
to be manufactured within the buyer’s co-operation and investment, but this
country and that the seller agrees to co-operation or investment is not
buy those components to use them in- related to goods supplied by the
house seller.
PRICE DISCOUNTS AND
ALLOWANCES
PRICE DISCOUNTS AND ALLOWANCES
Early
Purchase
Most companies
adjust their list
price and give
Volume
discounts and Purchase
allowances
Off Season
Purchase
Discount Pricing
Concessions Ordering
in return Electronically
Buying larger
quantities
DISCOUNT TYPES
ALLOWANCE
SEASONAL PRICE
DISCOUNT DISCOUNT
QUANTITY
DISCOUNT
FUNCTIONAL
DISCOUNT
PRICE DISCOUNT
A Price reduction to
buyers who pay bills
promptly
Payment to
distribution
channel for
Offered by a performing
manufacturer to some service
trade channel
members if they
Manufacturer must perform certain
offer the same functions, i.e.
functional discounts selling, storing
within each channel
SEASONAL
DISCOUNT
A price reduction to those who
buy merchandise or services out
of season.
Hotels, airlines offer seasonal
discounts in slow selling prices.
Done in order to lure the
customers to buy their offering.
Disadvantages - firm may
have to offer these discounts on
every season which comes
during the year.
An extra payment designed to gain
reseller participation in special
programs
• Auction
• Uber Surge pricing
DEGREE 2
• Second-degree price discrimination occurs when a company charges a
different price for different quantities consumed, such as quantity
discounts on bulk purchases.
DEGREE 3