Virgin Galactic, a space lift company, is involved in developing commercial spacecraft. The company’s main purpose is to be the space line for planet earth, which entails making access to space accessible by everyone.
Virgin Galactic pricing depends on the payload size used. A payload includes the space occupied in the spacecraft including luggage. In addition, there are other factors considered in pricing such as experiment mass, approving ones payload complexity and any other special requirements one may need (Virgin Galactic). This type of a pricing strategy is very considerate given that people have different capabilities in terms of finances. In building the Virgin Galactic brand and creating a clear positioning for the brand in the marketplace, this pricing strategy will most likely be effective in that it the pricing is determined by the payload meaning anyone can fly depending ones capability. It caters for all clients in the market regardless of their financial capabilities.
A service that I recently purchased and represented good value for money is gym service. The pricing is based on the time spent in the gym and the complexity of instructions required. This is a good representation for good value for money in that the more you pay the higher quality of service you get. Recently, I visited a massage parlor. The pricing is based on a two-hour package where you pay a constant amount for a two-hour massage. In case you want to leave after one hour, the same price is paid. This does not represent good value for money in that a person massaged for one hour pays the same price with a person massaged for two hours. The pricing strategy should be adjusted to cater for people with tight schedules and charge depending on time spent (Mandjes, 2003).
Mandjes, M. (2003). Pricing strategies under heterogeneous service requirements. Computer Networks, 42(2), 231-249.
Research Flights – Virgin Galactic. (n.d.). An Introductory Guide for Payload Users. Retrieved July 30, 2015, from http://www.virgingalactic.com/human-spaceflight/research-flights/
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