Home » Customer Value in Pricing Strategy » Your team at Glow, a company that sells glow in the dark products such as glow sticks, wands, and accessories, is looking for ways to optimize prices on glow products sold at concert venues. How could an incentive curve show your team that you should consider some changes to price or unit sizes?

Your team at Glow, a company that sells glow in the dark products such as glow sticks, wands, and accessories, is looking for ways to optimize prices on glow products sold at concert venues. How could an incentive curve show your team that you should consider some changes to price or unit sizes?

The slope of your popular glow stick packages goes down between each package size.

Your new cat ear glow headbands are rated more favorably than your rival’s plain glow headbands, and looking at the incentive curve comparisons your price points are very similar.

Sales of your necklace and bracelet glow packs have a steep downward slope as package sizes get larger.

Glow charm accessories, an add-on feature for your necklaces, have the same downward slope trajectory as other items in the product line.

With a more favorably reviewed product, your team should consider using this incentive curve comparison to help determine if you are undercharging for this product and could charge a higher price.