E-Distribution

Hi, How are you doing?
Here's an introduction to Tariff Management better known as Payment.

There are many ways we can accept payments;

• Online
• Cash
• Credit Card
• Bank Transfer
• E-wallet

Clearly communicating to customers about multiple payment options from the get go means that they'll be able to pick one that's most beneficial to them. By adding to their convenience, we increase our chances of a revisit too.

These are the factors we need to consider before we set our prices;

• Operating Costs
• Fixed Costs
• Variable Costs
• Distribution Costs
• Seasonality
• Competitor's Prices
• Capacity

It's important to set prices above costs! The Break-even Point - Total Income = Total Expenses This is the lowest profit limit.

Next let's take a look at strategic pricing and profitability. These are the questions we need to answer first.

1. How unique is the business?
2. What are the value added services?
3. What is the target audience?
4. What are the operating costs?
5. What do the competitors charge?
6. What is the overall strategy?

Here's a few pricing strategies we could use;

1. Mark up pricing
2. Competitive pricing
3. Break-even pricing
4. Promotions

Keep in mind that discounts and promotions are a great way of increasing sales.
These are some promotional strategies to keep in mind;

1. Seasonal pricing
2. Last-minute pricing
3. Early-bird pricing
4. Stay/Pay

We are now ready to take this course and learn how to use these payment methods to price our services and incorporate convenient payment methods.

Let's learn!