1. Pricing
• Importance of pricing
• Pricing strategies
• Determinants of price
• Pricing tactics
2. Importance of Pricing
• Pricing mistakes
– Overpricing
– Underpricing
• Pricing as an indicator of quality
• Value equation
Benefits
Value = Price
– Pricing as exchange
– Price parity not necessary
– Value parity is necessary
3. Pricing Strategies
• Generic strategies
– Price leader
– Price follower
– Price nicher
Automated Broker-
Online
Phone Assisted
Trades1
Trades Trades
<120 trades2
per year
AND $12.95 for Online Online
$999,999 or first 1,000 commission commission
less in shares5 + $5.00 + $25.00
household
balances3
120+ trades4
per year OR
Online Online
$1,000,000+
$8.95 commission commission
in
+ $5.00 + $25.00
household
balances3