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Pricing Strategy of Radypass
Radypass’s
Pricing Goal
Cost Structure
1.Up Front Cost
2. Product Cost
Pricing Strategy
Dynamic Pricing
Pricing Models
Expected Effects
on each Stakeholder
Pricing Goal
Maximize
Profit
Maximize Market Share
Maximize Market Size
Cost Structure
Reference System
[Hi-pass System]
: Highway Tollgate Payment system
based on WIRELESS NETWORKING
: Approx. 35,000,000 USD
to cover metropolitan area
Cost Structure
Subway System :
about 400 stations
* 4 RFID Readers (EA station)
* Cost of Reader & Gates (about $200)
= appox. 3.2 million USD
Bus system Cost :
about 8000 buses in Met. Area
RFID Reader& Device ($100/bus)
= approx. 8 million USD
Solution Cost : 8 ~ 10 million USD
Total Cost : 20 million USD
RFID Chip : about 1$
-> Basic Chip
Add- in Financial Function
-> Premium …(생략)
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usion, the Pricing needs to consider 2 different groups that are :
-willing to pay a higher price
-reluctant to paying a higher price
Pricing Strategy
Dynamic Pricing
Under assumption that
RADYPASS is a Mobile Phone related device
Extra charge : Rush hours (50 won)
Discount : Most unused hours
- Pricing Models
Economy
-USIM Chip Free
-Transporation Fee
800 won
-Personal Information provided to Radypass ( for Marketing purposes)
Basic
-USIM Chip
2,500 won
Transportation Fee
900 won
Same payment as current system
Premium
-USIM Chip
5,000 won
Transportation Fee
900 won
- Finance company related Cash Back 100 won/time
Pricing Strategy
- Pricing Table
Pricing Strategy
Always ready to pass … Rady Pass
Expected Effect
- Benefits on Each Stakeholders
Transportation Firms
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