EMPERIO Marketing Lab
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Pricing and launch strategy

Choose a city, channel and price you can test with a clear hurdle.

Quick learn

A fictional kitchenware company compares ₹799 with ₹999. Unit variable cost is ₹450. Expected monthly demand is 1,200 and 850 units respectively. Launching online in one city costs ₹2 lakh for the month.

Deep dive

Estimate willingness to pay using a credible alternative and actual purchase behaviour. Model net realized price, cost to serve and demand together. Include commissions, returns or promotions where they change by channel.

Worked decision

When the decision changes

If returns reduce realized net price at ₹999 by ₹80 per unit, the high-price option falls to ₹1,98,650. Pilot pricing within a comparable audience and track realized price, delivered units and returns.

Apply it

Which price leads at the original assumptions?

Source and further reading

OpenStax · Establishing pricing policy

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