Pricing Strategies Revealed

Posted on May 1, 2013 | 0 comments

In every business, pricing is very crucial. Because despite the fact that you are the best one in your industry, if you ask for too much then people might go looking for cheaper alternatives. Pricing greatly affects the profitability of your business.

You have full control on the price of your merchandise. You can adjust it anytime or you can give limited promotions to spice up customer interaction. Did you know that a simple price adjustment can bring you more than a 150% of your usual client base? Yup that is how powerful your pricing is.

Value and cost orientation

How do you want people to see your business as a brand? A company that provides cheap but high quality products or a business that focuses on offering the best of the best with no regard to cost? Settle your image and know how you want your business to be recognized. This will give you an idea on how you will price your products and services.

Consistency

Although it is great to try to adjust your business along with the changing economy, you should not try to change your pricing too often. It needs careful consideration and research for you to adjust your pricing. If you think that your competition has changed pricing, or there is not much patronage for a certain product then a pricing change might be necessary. Just make sure that they are not too drastic to confuse your clients.

Product presentation, packaging and intended function.

Do not overprice. As much as you want to earn more you should never burden your clients to pay more just because you are becoming a household name. Also, your product should reflect the price that you have given it. If you are on the luxurious side, make sure that what you display and offer them are all luxurious, they should be worthy enough for the high cost.

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