Pricing Strategies Formula 1
Based on these 6 factors in setting a price: selecting the pricing objective, determining demand, estimating costs, analyzing competitors costs, prices and offers, selecting a pricing method and selecting the final price, Singapore GP Pte Ltd employed 2 different pricing strategies. They are
1. Price discounts and allowances
2. Differentiated Pricing
Promotional pricing was not used in the sale of the FORMULA 1™ SingTel Singapore Grand Prix tickets as none of the techniques: lost-leader pricing, special-event pricing, cash rebates, low-interest financing, longer payment terms, warranties and service contracts and psychological discounting were used to stimulate early purchases were used. This is probably because the annual international event is highly exclusive and a world’s first and therefore consumers would most likely be rushing to buy the tickets, thus not needing any promotional pricing to encourage early sales.
Price Discounts and Allowances
Price discount is the act of giving discounts for early payment, volume purchases and off-season buying.
For the FORMULA 1™ SingTel Singapore Grand Prix, a quantity discount was given to buyers who purchased a 3 day walkabout pass instead of a daily pass. The savings of about $36 was given to encourage attendance for all three days of the match. A 10% discount was also given to youths aged 7-15 and seniors above the age of 60. This was done to target a wider range of audience.
Promotional allowance is shown when SingTel subscribers are offered the option to purchase single-day walkabout tickets before the tickets were released to the public. This is the reward for consumers who are SingtTel subscribers who choose to participate in this advertising program.
Differentiated Pricing
Differentiated pricing occurs to accommodate the variance of consumers, products, locations etc. In differentiated pricing, there is price discrimination as a product or service is sold at 2 or more prices that do not reflect a
1. Price discounts and allowances
2. Differentiated Pricing
Promotional pricing was not used in the sale of the FORMULA 1™ SingTel Singapore Grand Prix tickets as none of the techniques: lost-leader pricing, special-event pricing, cash rebates, low-interest financing, longer payment terms, warranties and service contracts and psychological discounting were used to stimulate early purchases were used. This is probably because the annual international event is highly exclusive and a world’s first and therefore consumers would most likely be rushing to buy the tickets, thus not needing any promotional pricing to encourage early sales.
Price Discounts and Allowances
Price discount is the act of giving discounts for early payment, volume purchases and off-season buying.
For the FORMULA 1™ SingTel Singapore Grand Prix, a quantity discount was given to buyers who purchased a 3 day walkabout pass instead of a daily pass. The savings of about $36 was given to encourage attendance for all three days of the match. A 10% discount was also given to youths aged 7-15 and seniors above the age of 60. This was done to target a wider range of audience.
Promotional allowance is shown when SingTel subscribers are offered the option to purchase single-day walkabout tickets before the tickets were released to the public. This is the reward for consumers who are SingtTel subscribers who choose to participate in this advertising program.
Differentiated Pricing
Differentiated pricing occurs to accommodate the variance of consumers, products, locations etc. In differentiated pricing, there is price discrimination as a product or service is sold at 2 or more prices that do not reflect a