Pricing Strategy is one of the most important elements of creating profitable, sustainable business operations. It is also one of the most challenging aspects of business to do well because it is not a "set it and forget it" topic! It requires frequent review and updates.
There are several different approaches to pricing, and if you are doing it well you are probably switching between strategies at different times in your product or service life span.
A simple overview of basic Pricing Strategy:
Market Penetration - often used at release of a new product to attract customers from competitive products
Economy - Walmart & Target do this well as consumers look to save money, but not a good fit for small business
Premium - commonly used when a new type of product or service is released until competition evolves
Bundle - used to provide higher perceived value and also move more product out of inventory
Psychology - selling to the emotion of the buyer whether it is based on fear or other emotions
In our business consulting projects we place a high importance on Pricing Strategies, which requires seasoned expertise and a great deal of research to create Pricing Strategies that will create business success. If your business is struggling to create growth and profit, give us a call 619-798-6774 or use our contact form and let's talk about it.