Overland Park Marketing state how marketing is not just advertising, it is also pricing strategy. Promoting your products may help get them in front of customers, but how you price them has an even bigger effect on a person’s decision to make a purchase. There are several things you should consider when creating a pricing strategy for your business:
1. Who is your target market?
What kind of income do they have? Do they value quality over price? Are they willing to pay top dollar just to make a statement? These are all things you should know about your target market. Answers to these questions will help you determine the type of pricing strategy you should use.
2. What are your competitors doing?
If your target market is price conscious, it’s important that you offer competitive prices. The only way to effectively determine a competitive pricing strategy is to monitor your competitors closely. Do their prices change regularly? Do they offer any discounts?
3. Should you offer any packages?
It may be beneficial for you to offer packages, or “bundles.” This is especially true for service-related businesses. By offering packages of complementary products or services, you can discount the price a little to make it a better deal for the customer, all while ensuring an increase in sales volume for your business. Just make sure you don’t discount it so much that you’re barely making any money off the deal.
4. Is your pricing consistent across the board?
Often times I’ll review a company’s pricing strategy and I can tell that they really don’t have one. They’ll simply pull a number out of thin air and assign it to a random product. It’s important that you have a pricing strategy in place and that it’s consistent across the board. Many small businesses start at the breakeven price and mark everything up a certain percentage. This is better than nothing, but it’s also important that you take note of your best sellers and find out from your customers which items are in high demand. These are the items you can mark up even higher because people are willing to pay more for them.
Read more at: http://www.overlandparkmarketing.com/marketing-is-not-just-advertising-its-also-pricing-strategy
Learn how Stratinis can endeavour to optimize and manage your prices through our pricing software