Case 2
1. How does Hammerpress employ the concept of dynamic pricing?
Hammerpress offers a set of pricing options. They are like other companies in the industry. They practice cost-based pricing, which is: design great product, add up the costs, and set a price. First, they offer an estimate price to the customer and offer a certain amount of revises. In the video though, revising a piece of work can be costly, and Hammerpress tells their consumers that it will cost them extra in order to make additional revises. The second way is when Hammerpress splits the operation costs with the company/consumer in return Hammerpress gets half the revenue per sale. If the company is not satisfied with the product, they can revise it as many times as they want. However, if additional revises become too costly then Hammerpress will tell the company that this will cost more money.

2. Discuss the three major pricing strategies in relation to Hammerpress. Which of these three do you think is the company’s core strategic strategy?
A. Price based on hours of design, material and labor for production
B. Split the material costs, labor, and profits in half. (50-50)
C. Do it because they believe it will be profitable in the long-term, not short-term. Hammerpress is also responsible for marketing the product. I believe the company’s core strategic strategy is splitting everything 50-50 because this is both a short-term and long-term source of revenue, assuming the company continues to buy the product from Hammerpress. Also, by splitting the costs in half, Hammerpress does not half to stress out about the potential costs of making the product since the company might want to revise the product that Hammerpress makes. I also think their third pricing strategy is their least profitable because those products might sell well in the beginning but since they have to market