Name

: Wahyu Fahrul Ridho

NIM : 29116013
Class: YP 55 B

Metabical Pricing Strategy

There are three pricing strategy that Printup proposed. First is
comparing it with Alli as a benchmark, second is comparing it with
another CSP drugs, third is to concentrate on the values to consumers of
successfully completing the program. The three pricing options were
realistic according to market research they were conducted, but some
have its quirks. For example the third options were considered too high
for some respondents. To determine the suitable price, first we have to
determine the projected demand using method printup proposed and
then counting the projected sales. Next we evaluate the pricing options.
By evaluating these pricing options, we will found its ROI and then able
to choose which is the most suitable pricing option for metabical.
Projected Sales
Method 1
Year 1

Year 2

Number of
Americans with
71.060.0 71.060.0
25 > BMI > 30
00
00
x 35% actively
trying to lose
24.871.0 24.871.0
weight
00
00
x 15% who are
comfortable using 3.730.65 3.730.65
diet pills
0
0
10% who might
purchase
Metabical in Year
1
adding 5% each
subsequent year
plus 60% buy a
second package
plus 20% of these

Year 3

Year 4

Year 5

71.060. 71.060.0 71.060.0

000
00
00
24.871. 24.871.0 24.871.0
000
00
00
3.730.6 3.730.65 3.730.65
50
0
0

373.065

373.065

373.065

373.065

373.065

186.533

373.065

559.598

746.130

223.839
44.768

335.759
67.152

447.678
89.536

559.598
111.920

671.517
134.303

buy a third
package
641.67
962.50 1.283.3
2
8
44
Sales
Total Projected sales in 5 years : 6.416.718

1.604.1
80

1.925.0
15

Year 3

Year 4

Year 5

71.060.0 71.060.0
00
00

71.060.
000

71.060. 71.060.0
000
00

25.080.0 25.080.0
00
00

25.080.
000

25.080. 25.080.0
000
00

2.508.00 2.508.00
0
0
1.254.00
0
0
1.504.80 2.257.20
0
0

2.508.0
00
2.508.0
00
3.009.6
00

2.508.0 2.508.00
00
0
3.762.0 5.016.00
00
0
3.762.0 4.514.40
00
0

300.960 451.440 601.920

4.313.76 6.470.64
8.627.5
0
0
20
Sales
Total Projected sales in 5 years: 43.137.600

752.400 902.880
10.784. 12.941.2
400
80

Method 2
Year 1
Number of
Americans with
25 > BMI > 30
x 12% say they
will go to a doctor
to request
prescription
10% who might
purchase
Metabical in Year
1
adding 5% each
subsequent year
plus 60% buy a
second package
plus 20% of these
buy a third
package

Year 2

After the projected sales were counted, next step is counting the
projected revenue by using each price options:
Manufactur
er Gross
Margin
Retail Price
$75
Method
1

Year 1

Year 2

Year 3

Year 4

$48.125.38
5

$72.188.07
8

$96.250.770

$120.313.46
3

Year 5 Total

$144.376.15
5

$481.253.85
0

Method
2

$323.532.0
00

$485.298.0
00

$647.064.00
0

$808.830.00
0

$970.596.00
0

$3.235.320.0
00

Retail Price
$125
Method
1
Method
2

$80.208.97
5

$120.313.4
63

$160.417.95
0

$200.522.43
8

$240.626.92
5

$802.089.75
0

$539.220.0
00

$808.830.0
00

$1.078.440.
000

$1.348.050.0
00

$1.617.660.0
00

$5.392.200.0
00

$96.250.77
0
$647.064.0
00

$144.376.1
55
$970.596.0
00

$192.501.54
0
$1.294.128.
000

$240.626.92
5
$1.617.660.0
00

$288.752.31
0
$1.941.192.0
00

$962.507.70
0
$6.470.640.0
00

Retail Price
$150
Method 1
Method 2

Next we should count ROI to measure how suitable our pricing options to
our goal is. But before counting the ROI, we should know how much our
investment.
Investment :
Year 1
$23.146.00
0

Year 2
$14.896.0
00

Year 3
$14.896.0
00

Year 4
$14.896.0
00

Year 5
$14.896.0
00

$1.200.000

$1.200.00
0

$1.200.00
0

$1.200.00
0

$1.200.00
0

Investment

$400.000.0
00
$424.346.0
00

$0
$16.096.0
00

$0
$16.096.0
00

$0
$16.096.0
00

$0
$16.096.0
00

Total
Investment

$488.730.
000

Marketing
Costs
Manufacturing
Overhead (1.2
million/year)
R&D (Sunk cost
of $ 400
million)

Therefore, the ROI calculation is:

Revenue

Investment

ROI

Option 1

Retail Price $75

Method 1
Method 2

Option 2

561,99%

$802.089.750
$5.392.200.00
0

$488.730.00
0
$488.730.00
0

64,12%
1003,31
%

$962.507.700
$6.470.640.00
0

$488.730.00
0
$488.730.00
0

96,94%
1223,97
%

-1,53%

Retail Price
$125
Method 1
Method 2

Option 3

$481.253.850
$3.235.320.00
0

$488.730.00
0
$488.730.00
0

Retail Price
$150
Method 1
Method 2

Option 1
The ROI is -1,53% when were using method 1. It means that the
company will be most likely in a deficit if we implement his pricing
options. With method 2, the ROI is 561,99%. It seems high but it is
unrealistic to achieve that high ROI
Option 2
The ROI is 64,12% when were using method 1. It means that the
company this is suitable price because it still have a positive margin. It is
also acceptable because it is above 5% just like the CSP wanted. With
method 2, the ROI is 1003,31%. It seems veryt high but it is unrealistic
to achieve that high ROI.
Option 3

The ROI is 96,94% when were using method 1. It means that the
company this is suitable price because it still have a positive margin. It is
also acceptable because it is above 5% just like the CSP wanted. With
method 2, the ROI is 1223,97%. It seems very high but it is unrealistic to
achieve that high ROI.
Conclusion
From the ROI, comparing three pricing options seems very tricky. Option
1 is out of the league because it have negative margin, and it is very
risky to implement this pricing model. Option 2 seems fair enough.
Option 2 have above minimum ROI when using method 1, but it
unrealistically high when using method 2. Option 3 is also good because
its ROI are above minimum and also its higher than option 2. But method
1 also have very high ROI, and it seems unrealistic. Moreover, some
people think that the price of option 3 is above they can afford. It is also
risky to implement option 3. Again, method 2 have unrealistically hogh
ROI. By comparing all options, the most suitable pricing options is option
2. The ROI are reaslistic comparing to others and it is above minimum
ROI that CSP wanted.