As per a report stated by WHO, around 3.4 million people die from water-borne diseases every year. Taking a note to this scenario, it is important for families to have a reliable RO water purifier system at home. The tap water or the well-water may look clean but is one of the major carriers of diseases. In addition to micro-organisms, drinking water in India also carries dissolved impurities and other contaminants. Continue reading “Kent Pearl RO Water Purifier: Why is it a great purchase?”
The pricing of goods by eCommerce retailers is becoming increasingly more competitive, thus forcing eCommerce retailers to make an extra effort to price their products right. Big online businesses, like Amazon, have the advantage over the smaller businesses, as they can lower their prices in order to try and drive the smaller retailers out of business. In order to survive, the smaller retailers have to develop a competitive pricing strategy for their products.
How does a small retailer go about competing with the biggest eCommerce retailers in the market today? Here are a few tips to improve pricing strategy: Continue reading “5 Ways to Develop a Competitive Product Pricing Strategy for eCommerce Retailers”
“Say it with flowers,” is the advice that marketing expert Elmer Wheeler gives to businesses in regards to product packaging. The idea being that your packaging has an impact on influencing customers and connects people to your product through showmanship. Basically, the way you package your product adds integrity to what you’re selling.
So, how attractive is your packaging? Could it be improved? When it comes to packaging there are two very important things to consider: cost and design. You want your package to stand out visually, but when you’re shipping hundreds of thousands of items per day, the cost of attractive packaging is significantly high. Still it’s important to stand out, so how does a business ship attractive packages in a cost-effective manner? Continue reading “4 Ways You Can Save Big on Your Business Shipping Costs”
Dental Implants? Well, do you know that they play a majorly important role in dentistry. Infact, I wouldn’t be wrong to comment that a large percentage of the total procedures performed in the modern dentistry are almost impossible to carry out without dental implants. This is mostly true for restorative procedures like those where people who have lost their natural tooth or teeth need to get them replaced with the artificial tooth-looking creations. In these procedures, making the artificial tooth is not actually as complicated. It does not require equipment nor skill of more than a dental technologist. The tooth making can be termed as also an artistic venture which a partly skilled person with the right tools can carry out too. Continue reading “What is the material that dental implants are made from?”
When it comes to the argument of vaping vs. smoking, the one that wins is most often the lesser than the two evils. According to recent studies, it has been seen that vaping is slightly better than smoking but that doesn’t mean that vaping is all about benefits without any disadvantages. Unlike smoking, vaping involves inhalation of vaporized e-cigarette liquid which consists of nicotine, water and a base of propylene glycol or vegetable glycerine and sometimes it also contains artificial flavours. It is due to the lack of smoke inhalation that many users believe that vaping is a much safer alternative than smoking. Continue reading “Vaping cartridges, tanks and cartomizers – Discussing the characteristics of each”
If you are involved in construction work of some description, whether professionally or as a hobby, it is likely that you will use a nail gun. Thanks to these tools, you can now complete a job in just minutes that would have took hours in the past. This is because nail guns use collated stainless steel nails, which are highly beneficial to all construction operations. Unfortunately, very few people understand just how many benefits these nails have and how they have actually changed and modernized the construction industry.
Ever wondered what makes up the price of an airline ticket? It is not exactly rocket science though it becomes pretty difficult to understand the nuances of fluctuations. Airlines are one of the hottest services industry. So what causes these changes? We are about to explain. Continue reading “The price of an airline ticket”
There’s no doubting the BMW 3 Series Touring’s credentials as the car of choice for many for work and pleasure. It is particularly popular among businesses thanks to its reliability and cost-effectiveness. Continue reading “BMW 3 Series Touring performs for work”
To all our thousands of subscribers, we thank you for being there for us patiently. We have finally revamped the Business Fundas website, after its database crashed at the hosting server. Do mail us your comments and suggestions on how we can improve the look and feel of this blog. A wordpress based new theme has been implemented, and we have made a substantial effort to speed up the page loading time. Also, we have minimized the external links to social media directly. Hope all these changes would ensure a better readability from all places, including work.
Pricing is one of the key components of services marketing. Service providers like that of telecom service providers, often are at a major dilemma, how to price their offerings? What would be a sensitive price point for converting a potential target customer into an actual consumer? The divide between perceived value of a service and its perceived cost would often vary across segments of customers for the same service offering.
So how should a pricing manager go about pricing network services?
Typically some of the more classical approaches in pricing Telecommunication Network Services are as follows:
- Maximization of consumer surplus
- Welfare maximization
- Peak load pricing
- Pareto optimal pricing
- Ramsey prices
- Cost based pricing
Here the objective of the pricing manager would be to set a pricing technique which depends on measurable parameters
- Fully distributed cost pricing (preferred by regulator)
- It may obscure the fact of inefficient technology
- Over provisioning of infrastructure
- Long run incremental cost approach
- It may be costly to implement
This pricing technique must ensure that if not at an individual service level, at least at a service bundle level, the price bundles post consumption must be profitable to the service provider.
Another major challenge for the pricing manager is how to apportion the cost when same resource produces two services (voice and video). This becomes extensively critical when a cost based pricing mechanism is used. It is important to note at this point that decisions, if not prudently taken, would turn a Business Unit of the service provider into a potential cost center without strategic deliverables. Cost apportionment is especially problematic and questionable in an industry marked by production not directly proportional to input materials (as all services are, where the intellectual capital matters a lot more than tangible artifacts).
To take care of this challenge, one may approach this dilemma using the following approaches:
- Subsidy free (very difficult to decide on the price)
- Sustainable (Ramsey pricing)
- Activity based costing : It is based on a hierarchy of four levels and is a refinement of FDC approach
Another major issue is Pricing Services Bundles. Pricing is a major decision point in the adoption of service bundles, especially when the key differentiators are extremely intangible in nature. That again is another ball game. If you find that interesting, you can go through the following article of mine: A Model for Bundling Mobile Value Added Services using Neural Networks, 2012, International Journal of Applied Decision Sciences, Vol. 5, No. 1.
Do get back to me if you have any queries.
I would like to thank the entire HostSo team for the support they have provided me. Business Fundas is up and running. The blog appears to be operational again.
Arpan Kar (Editor, Business Fundas)
There are multiple approaches to pricing of information technology products and services. Although pricing strategies differ based on whether the software or system is getting sold as a product or getting leased as a service, there are certain basic generic strategies for pricing the same. These strategies are being discussed in this article. Continue reading “Pricing of Information Technology”