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How can one make profit successfully? (11 Apr 2007)

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All businessmen look for profit. This is the only way to survive. But many businessmen ask, “ How can one make profit successfully? ” As profits are directly related to the price, a suitable price is essential. What is the secret to a successful pricing strategy? How can one set a price that is attractive to customers and ensure profits at the same time? The consultant for this episode, Prof Andrew Chi Fai CHAN of the Department of Marketing, the Chinese University of Hong Kong, tells us that there are two successful strategies in pricing: a relatively high price and a relatively low one. Products unique in the market can be set at a relatively high price. If this product is also a necessity, it can fetch a better price as there are no competitors. If a product possesses unique qualities which cannot be replaced, like innovative designs or service, it also has the ability to attract customers despite its high price. In this episode, Ecosage sells its products at a higher price and offers 15% more than others to collect used materials. What is his key to success? Prof CHAN will analyze for us how a business operates with a high price. The other strategy is to set a relatively low price. This strategy looks easy, but it requires skills to avoid risking one ’ s capital or reducing the price blindly. Prof CHAN points out that this works if a company has an efficient management to control the cost and that no-one can copy this mode of management. This strategy is easy to understand but difficult to run. One good example is the Tao Heung Holding Limited, a restaurant group with a few dozens of restaurants offering different kinds of dishes. By setting up a logistics centre and limits in profits, it manages to attract customers with low prices and quality food. In this episode, Tao Heung, which started with selling a chicken at $1, will unfold its unique operation system. In the course of development, an enterprise sometimes undergoes changes. How can a brand re-position itself? What are the skills involved in creating a popular product or a high-end product? This episode will talk about how watch brand Boluva changes from a popular brand to a mid-range one, uncovering how the price and the image can interact with each other.

Program: 
Wins on Marketing
Publish Date: 
Wednesday, April 11, 2007
Station: 
RTHK
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