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Pricing has super powers. People can buy because of pricing. From what is not going to buy, but instead be purchased as ‘hot’ look tempting price. One can also not be bought because the clay is not the right price. But there are also people who buy because the price is overpriced, although it’s nothing, because it helps improve its status in the eyes of his friend.

Pricing is a matter between the internal functions within the company. For people in the company’s finance, pricing is a concern because it relates to costing. Create the marketing, pricing, marketing to the attention of people because of its relevance to practice in the field of marketing campaigns. Create sales people, pricing is certainly a concern because the price determines its own sales.

If pricing is not considered important by everyone in the company, must be a hassle. The role of pricing is very large as if it was life companies. If until one determines, his impact on turnover and profit will be felt.

Pricing is not just to achieve sell higher volume, and also not just to produce in the short term, but the pricing is very important because of its effect on profits bottom-line. On the Pricing Advantage, Michael MARN results of his research suggests that if a price is increased one percent, cateris paribus at the same fixed cost and variable cost fixed, the operational profit (operating profit) of these products could rise to 11 percent.

Compared with other aspects, for example if the variable cost is reduced by one percent, its effect on operating profit is only 7.3 percent. If the fixed cost is reduced by one percent, its impact on operating profit was 3.2 percent. In the other scenario, if the volume is multiplied by one percent, Michael MARN said that the effect was not as if you raise prices, because the volume rose one percent is approximately equal to the profit increase of 3.7 percent.

Down the price of fine, high elasticity guaranteed origin, its gross margin could be high, and also must not damage the brand image. If you knew how to use the right pricing, the marketer is likely to bring value to the company. Conversely, if you do not know how to use the correct pricing, then what happened was a disaster.

In the era legacy, pricing can be based on four things. First, the price determined on the consideration of market turbulence (market-based pricing) is very conventional. Here, marketers only be price-takers rather than price-maker. Pricing is based on the law of supply and demand in the market. If demand increases while supply remains or even decline, of course the price will go up. And vice versa. If the abundant supply of goods in the market while demand from regular customers, the price will come down too. If trapped in the pricing like this, the marketers are also getting into the game industry. Yet the task of a marketer is how to create a new game in the industry. Reliable and marketers are marketers who can escape the law of supply and demand.

Second, is through cost-based pricing. Well-known formula of cost plus a profit mark-ups for the same pricing. In the discussion easy, we must know what cost and how much profit ask, just how much the price is determined.

The third is through pricing-based competitors. Here the company already had a similar product price data from existing competitors in the market. Lived then determine whether the company will put the price above, below or at the level of the average price of similar products already on the market.

The fourth is through value-based pricing. Here, firms set prices based on the value (value) of these products in the eyes of customers, This is done if the product is an innovative product that has a competitive advantage compared to other products.

Fourth it is in line with the 4C model in the era legacy. Market-based pricing is about the price of menentapkan consideration the scope of market changes (Change). Cost-based pricing is how we set prices based on cost dynamics in the internal company (Company). Competitor-based pricing is how we do benchmarking prices against competitors (Competitor). Value-based pricing is how we set the price after seeing the customer side of the dynamics of change in the value of the customer (Customer).

In the era of New Wave, pricing practices also changed because of three things. First, the era of New Wave is a horizontal rather than vertical, the company doing pricing practices will be more horizontal in which through the process of negotiation with the customer. When used in the Legacy era, marketers can be moved from price taker to price maker, the era of new wave in this task of marketers is how to move from a price maker price facilitator. Because in the end price will be determined together no longer a party.

Second, because of the Connector (C fifth), then the dynamics of prices and costs will be more ups and downs in a transparent manner. Consumers will know the price that really fits what. And not only that, they will know that a lot of elements of the real costs. Information on prices and costs had already tracked more easily.

Third, marketers who sell their products in co-create with the customer community. This means that products sold could be customized according to customer desires, can also be created by consumers themselves increasingly communal. Products like this in the end of the commons, not a mass nature, but belong to a particular community.

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