Back to Cost and Economics in Pricing Strategy
University of Virginia

Cost and Economics in Pricing Strategy

How much should you charge for your products and services? Traditionally, businesses have answered this question based on the cost to produce or provide their goods and services. This course shows you the economic factors behind pricing based on cost and the pros and cons of a cost-based pricing approach. Developed at the Darden School of Business at the University of Virginia, and led by top-ranked Darden faculty and Boston Consulting Group global pricing experts, the course provides the practical and research-based models and methods you need to set prices that maximize your profits. By the end of this course, you’ll be able to: --Apply knowledge of basic economics to make better pricing decisions --Recognize opportunities for price discrimination—selling the same product at different prices to different buyers—and recommend strategies to maximize sales and profits --Calculate three types of price elasticities to determine the impact of price on demand --Analyze and apply different pricing models -Cost-plus pricing -Marginal cost-plus pricing -Peak-load pricing -Index-based pricing --Evaluate the impact of channel intermediaries and customer lifetime value on pricing

Status: Revenue Management
Status: Product Strategy
BeginnerCourse12 hours

Featured reviews

WW

5.0Reviewed Jun 4, 2022

The course is well planed and easy to absorb. The example is clear to understand plus, the formula is well used along side with real life example.

CA

5.0Reviewed Jul 6, 2019

All you need to understand about calculations and economics regarding pricing is explained, in detail, using clear examples and with great material to feel satisfied about complex information.

SM

4.0Reviewed Mar 10, 2018

A good course but there were places where I felt things weren't clearly explained. Also, the quiz questions were sometimes somewhat ambiguous.

PJ

5.0Reviewed Apr 18, 2021

Great course. Helped me understand how to price your product with respect to market prices in order to attract customers.

LB

5.0Reviewed Aug 31, 2020

A great refresher course that allowed me to get back into the pricing calculations with ease. It can be challenging if you are not familiar with the statistical calculations.

MP

5.0Reviewed May 7, 2018

Concepts in this course are challenging but the class is setup for students to succeed. I really enjoyed this course and would recommend it to anyone looking to learn more about pricing strategy.

RZ

4.0Reviewed Dec 19, 2017

Pretty good content, but would have liked the option to do more practice problems, particularly problems using formulas from the course and real world applications. Overall it was a valuable course.

NP

5.0Reviewed Jun 11, 2019

Really helpful and well-designed course for those interested in understanding the basic Pricing concepts in practice and learn how to approach any pricing challenge

MS

4.0Reviewed Aug 22, 2020

Very helpful. The course provided conceptual insight in price setting methods apart from other relevant Technics and tools.

MC

5.0Reviewed May 8, 2017

Interesting module considering this is my first time trying to understand pricing and how to set pricing. Learnt a lot, thanks.

OA

5.0Reviewed Apr 27, 2019

The succinct and exhaustive account of pricing. Specifically, this course highlights the role of a firm's cost structure in pricing strategy. Highly recommended!

PS

5.0Reviewed May 18, 2020

One of the most challenging courses I have done on this platform and yet one of the most rewarding ones. Can't wait to do the next one!

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