is tvirt. 7ing links the prices of multiple products. Again, the goal Suppose that Exhibit 12.4 is your practice's mar- ocit premiums), but ar son comers. The right combination is always is to balance multiple prices so as to maximize profits. What Should You Charge? CASE 12.2 keting forecast High-Income Clients Low-Income Clients Total Price 16,375 14,250 2,125 $35.75 $35.25 14.750 17.125 2,375 $34.75 17,875 2,625 15,250 2,875 15.750 18,625 3,125 16,250 19,375 $34.25 $33.75 $33.25 $32.75 3,375 16,750 20,125 3,625 17,250 20,875 3,875 17.750 21,625 $32.25 $31.75 $31.25 4,125 18,250 22,375 4,375 18,750 23,125 (continued Chapter Pricing CASE 12.2 (continued) Price Low-income Clients High-Income Clients EXH Mar 4.625 4,875 19.250 Total 23.875 24.625 For 19.750 (ca 5,125 20,250 $30.75 $30.25 $29.75 $29.25 $28.75 $28.25 $27.75 $27.25 20,750 5.375 5,625 5.875 21,250 25.375 26.125 26,875 27,625 28,375 21,750 6,125 22,250 6,375 22,750 29.125 Discussion questions: By law, you must charge everyone the same price. What do you charge? Your costs equal $100,000 plus $20 per visit. What are your revenues, costs, and profits? If you could charge low-income and high-income customers different prices, what prices would you charge each group? What would your revenues, costs, and profits be? Would this scenario be ethical? How would you try to identify the two groups? (You cannot do income surveys of your patients.) Pricing and Managed Care hese issues relevant in markets dominated by managed care? Yes the same information to set a price or to evaluate a contract. A is tvirt. 7ing links the prices of multiple products. Again, the goal Suppose that Exhibit 12.4 is your practice's mar- ocit premiums), but ar son comers. The right combination is always is to balance multiple prices so as to maximize profits. What Should You Charge? CASE 12.2 keting forecast High-Income Clients Low-Income Clients Total Price 16,375 14,250 2,125 $35.75 $35.25 14.750 17.125 2,375 $34.75 17,875 2,625 15,250 2,875 15.750 18,625 3,125 16,250 19,375 $34.25 $33.75 $33.25 $32.75 3,375 16,750 20,125 3,625 17,250 20,875 3,875 17.750 21,625 $32.25 $31.75 $31.25 4,125 18,250 22,375 4,375 18,750 23,125 (continued Chapter Pricing CASE 12.2 (continued) Price Low-income Clients High-Income Clients EXH Mar 4.625 4,875 19.250 Total 23.875 24.625 For 19.750 (ca 5,125 20,250 $30.75 $30.25 $29.75 $29.25 $28.75 $28.25 $27.75 $27.25 20,750 5.375 5,625 5.875 21,250 25.375 26.125 26,875 27,625 28,375 21,750 6,125 22,250 6,375 22,750 29.125 Discussion questions: By law, you must charge everyone the same price. What do you charge? Your costs equal $100,000 plus $20 per visit. What are your revenues, costs, and profits? If you could charge low-income and high-income customers different prices, what prices would you charge each group? What would your revenues, costs, and profits be? Would this scenario be ethical? How would you try to identify the two groups? (You cannot do income surveys of your patients.) Pricing and Managed Care hese issues relevant in markets dominated by managed care? Yes the same information to set a price or to evaluate a contract. A
