Workshop 3: Pricing management

Module 1: Pricing as an element of correct market positioning of the product and category

• The importance of price management in company strategy. Research on customer price perception.
• Pricing determinants in retail trade affecting the price.
• Shopping personas – division, sensitivity and use of appropriate tools.

Module 2: Pricing leverage as the cheapest tool for increasing profitability

• What is pricing leverage and how it affects profitability.
• Examples of ineffective tactics used by store owners.
• Exercise: calculating the pricing leverage for various decisions of the manager.

Module 3: Pricing strategies – best practices and most common errors

• Pricing strategies – best practices and most common errors.
• Principles of building margin calculators optimizing prices in categories.
• Factors building pricing strategies for products.

Module 7: Pricing psychology – pricing tactics

• Presentation of the assumptions of behavioral psychology in relation to pricing assumptions.
• Building a price image based on price markers.
• Top pricing tactics based on pricing psychology and customer perception of product value – e.g. anchoring, price lines, price gravity, number distances, gradation, marketing prices, small values, price blocking, price tips, round prices.
• Presentation of practical examples of tactics employed in traditional brick-and-mortar as well as online stores.

Module 8: The “Maximizing gains” exercise – pricing matrix

• Application of acquired knowledge of purchasing motives, pricing strategies and principles of price psychology.
• Price positioning strategies depending on the type of merchandise.
• Achieving the effect of the right price perception of the product.
• Calculating the effectiveness of price positioning depending on the adopted pricing strategy.
• Discussion and presentation of the concepts of each group as well as comparison of the effectiveness of the strategies and the use of the right pricing psychology tactics.