Pricing

The price of your Blue Ocean offering is initially set according to the level indicated broadly by where you drag the point on your Strategy Canvas – this creates an approximate price.  You may however fine-tune this approximate price in the input form by typing in the exact price you believe will unlock the most demand and still give you healthy profit growth. 

The price you are deciding on is the one at which you sell your product to distributors.  All distribution channels apply the same margin to all competing products.

Dumping is strictly forbidden in the BOSS world.  Therefore, the price of a product must be equal to or higher than its unit production cost.  In future periods, price changes greater than plus or minus 30% in one period will be highly discouraged as they often result in negative market reactions.  If there is a sudden and steep increase in price, buyers may react strongly and sales may stall.  On the other hand, if there is an excessive price decrease, the distributors’ margins will also decrease and your salespeople may have a hard time finding distributors for the product, leading ultimately to low sales.  An error message will warn you when such decisions are made.