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Pricing and Profitability for Product Managers

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• Description: A crucial aspect of a product manager's job is deciding what price to charge for a given product. It's equally important to understand that pricing decisions do not happen in a vacuum; the product manager will be held accountable for the success of the products he prices. Clearly, it's important for the product manager to understand the financial implications of his decisions. In this course, you'll learn about pricing factors and tactics that will affect your pricing decisions and then you will build on that knowledge to set pricing in a given business situation. Finally, you will learn strategies for determining the profitability of a product. By learning these critical tasks, you'll be better able to make key marketing strategy decisions.
• Target audience: Entry-level product managers
• Estimated Duration: 3
• Lesson Objectives: Pricing Considerations
  • identify the reasons why it's important to make successful pricing decisions.
  • match the factors that affect pricing to their examples.
  • match the pricing tactics to their examples.
  • match the steps for setting pricing to examples.
  • set appropriate pricing in a given situation.
  Profitability Analysis
  • choose the benefits of conducting profitability analyses.
  • match the steps for identifying non-performing products to correct information.
  • apply the steps to identify the most non-performing product in a given scenario.
  • sequence examples of the steps for calculating the contribution margin rate.
  • calculate the contribution margin rate given a set of data.
  • match the profitability calculations with examples.
  • perform profitability calculations, given a set of data.

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