Old Product is sold at $27 and Reduced Product is less functional than Old Product, to the point it delivers $6 less value to customers then Old Product. Reduced Product cost $10.00 to make.
Determine the reference price for Reduced Product?
Find out the differential value of Reduced Product in comparison to Old Product?
Find out the total value of Reduced Product?
What range would you suggest to marketing for pricing Reduced Product?