Beruflich Dokumente
Kultur Dokumente
Session 20
MM2
Prof. Avinash Mulky
Capturing Pricing
value
Profits
Value
Perceived
Downward pressure Feasible
from substitutes
Price
range
Price
1.4
0.6
1 Current Sale
Optimal sales
0.6
Casino 2.33
Highway petrol pumps 1.50
Shopping malls 1.05
Convenience stores 0.88
Supermarkets 0.88
Universities 0.86
Profit Potential
½ X 200 X 6000= 6 L
B
200
C
A
4000 10000
Price
200
Maximum Profit rectangle for a
single price
100
Contribution =
100 X 3000= 3 L
Sales Volume
40