Question

Lcg inc., a mobile manufacturing company, is launching its new product in the market. the managers at lcg want to price the product in a way that would enable the company to recover the investments made toward developing the product. which pricing strategy would be most effective for lcg inc. ? reference pricing

Answer 1

The answer is variable pricing strategies

If the company is launching a completely new they would have invested heavily in R&D and are about to invest a lot of money in the marketing and promotion as well.

Variable pricing simply takes into account the cost of bringing that product to market and prices the product accordingly. This is to ensure that the new product can help the company recover it's costs as soon as possible.

It also ensures that the final price is a balancing act so that the product's price is attractive for the buyer and a medium way between 'sales volume and income per unit' is achieved.