Ludhiana City Bus Services Limited: Pricing for Profits

內容大綱
Ludhiana City Bus Service Limited (LCBSL) was created to improve the urban transportation system in the city of Ludhiana, India. As per the existing pricing strategy, bus fares (one of key revenue source for LCBSL) were set by the state government. LCBSL management was convinced that there was ample scope for raising the bus fares. The partial project implementation had been generating a return on capital of 1.9 per cent. To reduce this breakeven period and achieve targeted returns on capital of 4 per cent, management was considering the option to increase fares across different distance categories. Would this price restructuring be a game changer for LCBSL and a benchmark pricing strategy for other city bus service projects to follow?
學習目標
<ul><li>Understand the concept of economic value estimation and its relevance in deciding selling price of a product or service.</li><li>Discuss levels to achieve pricing excellence in industry, product and transaction contexts.</li><li>Comprehend pricing to achieve desired return on capital.</li><li>Understand the importance of value-based segmentation.</li></ul>
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