Chapter 15: Price, the Only Revenue Generator
- What is the difference between leader pricing and a loss leader?
- Which pricing approaches do you feel work best long term?
- When is price discrimination legal?
- Which pricing strategies have you noticed when you shop?
- What new products have you purchased in the last two years that were priced using either a penetration or a skimming approach?
- In order to understand revenues and costs, get a two-liter bottle of soda, ten to twenty cups, and a bucket of ice. Fill each cup with ice and then fill it with soda. Assume each cup of soda sells for at least $1 and you paid $1 for the soda and $1 for the cups. How much profit can you make?
- Go to a fast-food restaurant for lunch. Figure out how much the price of a bundled meal is versus buying the items separately. Then decide if you think many consumers add a soda or fries because they feel like they’re getting a deal.