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Pricing Strategy of RadypassRadypass’sPricing GoalCost Structure1.Up Front Cost2. Product CostPricing StrategyDynamic PricingPricing ModelsExpected Effectson each Stakeholder*Pricing GoalMaximizeProfitMaximize Market ShareMaximize Market SizeCost StructureReference System[Hi-pass System]: Highway Tollgate Payment systembased on WIRELESS NETWORKING: Approx. 35,000,000 USD to cover metropolitan areaCost StructureSubway System : about 400 stations* 4 RFID Readers (EA station)* Cost of Reader & Gates (about $200)= appox. 3.2 million USDBus system Cost : about 8000 buses in Met. AreaRFID Reader& Device ($100/bus) = approx. 8 million USDSolution Cost : 8 ~ 10 million USD Total Cost : 20 million USDRFID Chip : about 1$ -> Basic ChipAdd- in Financial Function -> Premium ChipProduct CostUpfront CostPricing StrategySurvey Summary: 52 Sogang University StudentsOut of 46 samples that have replied‘ I have experience waiting at the Gates using public transportation.’Pricing StrategySurvey SummaryIDP-PME 1,750 won PS-PMC 2,450 wonPricing StrategySurvey SummaryIDP-PME 1,750 won PS-PMC 2,450 won

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Survey Summary
IDP-PME 1,750 won
PS-PMC 2,450 won
According to the statistics, the price needs to be set in the RAP area
The real targets of RADYPASS are expected to be Office workers….
But the survey samples are still University students :
relatively free of Rush hour stress

! A large percentage of our samples showed dissatisfaction towards the transportation payment system currently in service.
!! Showed positive responses toward paying a larger amount of money to a newly suggested system such as RADYPASS.

In conclusion, the Pricing needs to consider 2 different groups that are :
-willing to pay a higher price
-reluctant to paying a higher price

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