From the course: Pricing Strategy Explained
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Guess the pricing model
- First product I'm going to use is yogurt. Let's see, is yogurt cost-based, market-based, or value-based in terms of its pricing? And, by the way, depending on the yogurt and the yogurt brand it could actually fall into a different category, but for my example this is basic, normal, everyday yogurt. What would it be? Well in fact if you guessed cost-based you're right, it is cost-based. And in fact, when we look at yogurt, the reason it's cost-based, it's essentially a commodity, that means there's lots of different competitors in the marketplace. It's somewhat commoditized, or it's pretty much a staple product out there. And because of that it kind of falls into this cost, whatever it costs, plus a certain margin will actually create the price. There's also little variation in terms of different brands in terms of yogurt. They kind of stay within a certain range. Second one is, let me use a dry cleaner. Now a dry…
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