Variable Cost (or Random Discount) Strategy
Posted: Wed Jan 22, 2025 7:05 am
This pricing strategy of the company is based on the costs of finding the product.
Let's consider its application on a specific example. The minimum selling price of a unit of goods for an enterprise is 40,000 rubles. On the market, its cost varies from 40,000 to 60,000 rubles. In order to purchase a product at the minimum price, a potential client must spend 40 minutes of his time. If the consumer does not spend time searching, the purchase cost is in the range from 40,000 to 60,000 rubles.
That is, the difference between 0 and 20,000 rubles is how much the client is willing to value 40 minutes of his personal time spent searching for the cheapest product. Thus, a person who does not spend time on this makes a purchase for an average of 50,000 rubles, and someone who searches for a product in advance - for 40,000. The average savings are 10,000 rubles - that is, those people who estimate the time spent on searching for it as less than this amount will purchase the product.
Variable Cost Strategy
So, the company knows facebook database that part of the target audience spends time searching for a product, while another part buys the first option that comes their way. At the same time, the minimum retail price of a unit set by the company is 40,000 rubles. What pricing strategy should be chosen? The policy in this case should be built in such a way as to maximize both of these parts of the target audience.
The price per unit of the item should decrease randomly: first, the highest one is set – 60,000 rubles, and then gradually decreases to 40,000. That is, for that part of the audience that is not ready to spend its time searching for a product at the minimum cost, discounts should be provided rarely. Other potential customers are well informed and will make purchases only when the price drops to a level that is comfortable for them.
The main condition for this strategy is the different costs of potential consumers to search for products. That is, some of them, who, as a rule, have high earnings and value their time, will be ready to buy the product at the highest price. And the other, on the contrary, will wait for discounts, since they are well informed about the existing differences in cost.
Let's consider its application on a specific example. The minimum selling price of a unit of goods for an enterprise is 40,000 rubles. On the market, its cost varies from 40,000 to 60,000 rubles. In order to purchase a product at the minimum price, a potential client must spend 40 minutes of his time. If the consumer does not spend time searching, the purchase cost is in the range from 40,000 to 60,000 rubles.
That is, the difference between 0 and 20,000 rubles is how much the client is willing to value 40 minutes of his personal time spent searching for the cheapest product. Thus, a person who does not spend time on this makes a purchase for an average of 50,000 rubles, and someone who searches for a product in advance - for 40,000. The average savings are 10,000 rubles - that is, those people who estimate the time spent on searching for it as less than this amount will purchase the product.
Variable Cost Strategy
So, the company knows facebook database that part of the target audience spends time searching for a product, while another part buys the first option that comes their way. At the same time, the minimum retail price of a unit set by the company is 40,000 rubles. What pricing strategy should be chosen? The policy in this case should be built in such a way as to maximize both of these parts of the target audience.
The price per unit of the item should decrease randomly: first, the highest one is set – 60,000 rubles, and then gradually decreases to 40,000. That is, for that part of the audience that is not ready to spend its time searching for a product at the minimum cost, discounts should be provided rarely. Other potential customers are well informed and will make purchases only when the price drops to a level that is comfortable for them.
The main condition for this strategy is the different costs of potential consumers to search for products. That is, some of them, who, as a rule, have high earnings and value their time, will be ready to buy the product at the highest price. And the other, on the contrary, will wait for discounts, since they are well informed about the existing differences in cost.