As seen in Forbes, billionaire CEO of Berkshire Hathaway; Warren Buffett stated “The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without loosing business to a competitor, you’ve got a very good business”.
Investors that have spent any time delving into retail pricing know there are numerous approaches. Pricing approaches across industries, countries and companies typically fall into three categories:
- Cost-based pricing
- Competition-based pricing
- Customer value-based pricing
The ultimate goal of any company is to achieve an average until retail price, as close as possible to the initial price that they set the product for.
Read more at http://www.forbes.com/sites/gregpetro/2014/08/06/why-pricing-power-is-the-real-secret-to-value-investing/
Learn how Stratinis can help you explore the power of pricing
Inc. Magazine highlight how Amazon may be turning dynamic pricing on its head and you can too. Determining a pricing strategy for your products and services is one of the most complex processes you will engage in, particularly if you are an online retailer. Set prices too high, and customers won’t bite. Set them too low, and you could end up loosing money. In order to establish the correct pricing, you should take into account the following:
Compare price differences to your competitors’ prices
If you use a pricing algorithm, update your prices every morning
Collect regular data and benchmarks about products and pricing, then map them to your competitors
Conduct regular AB testing or different prices in the same or different markets, to determine pricing elasticity for a set of products
Read more at http://www.inc.com/jeremy-quittner/amazon-and-dynamic-pricing-what-you-need-to-know.html
Explore how Stratinis can help you manage and optimize prices
McKinsey&Company see harnessing the flood of data available from customer interactions allows companies to price appropriately – and reap the rewards. The key to better pricing is understanding fully the data now at a company’s disposal. It requires not zooming out but zooming in. To become sufficiently granular, companies need to do the following:
- Build skills and confidence
- Actively manage performance
- Listen to the data
Read more at
At Stratinis we can add value to your business through our pricing software. Learn more on our website.
Are you puzzled when it comes to pricing your new products or services? The web can be the perfect tool for performing pricing experiments and discovering your new product pricing strategies. Cynthia, see finding the balance when it comes to pricing can be difficult. The main objective is a price that enables for sufficient profit, while also allowing for plenty of sales.
The question remains how do you determine how to price your products and services? Do you opt for a lower price and more sales or fewer sales and a higher profit per sale? The web can be the a great tool for performing pricing experiments that will be enable you to achieve an ideal balance, in terms of your pricing offerings. The following can help you decide:
- Split testing online
- Customer segmentation
- Decoy pricing options
- Pricing strategies
- Price perception
Read more at http://cynthiakocialski.com/blog/using-internet-new-product-pricing-strategies/
Learn how Stratinis can help you make better pricing decisions.
Harvard Business Review answers what is the fastest way to profitably sell more of whatever it is your company sells. The verdict – better pricing. McKinsey & Co. studied the Global 1200 and found that if they raised prices by just 1% – and demand remains constant – profits would go up on average by 11%. To improve pricing following the 4 Cs is crucial:
Read more at http://blogs.hbr.org/2012/07/use-pricing-strategy-to-boost/
See how Stratinis Pricing Management Software can help you achieve your business potential.