Setting pricing - you may have more choice than you realize
Are you one of the many people that set pricing for their products and services instinctively? If so, you may be missing out on an important opportunity. Pricing can actually differentiate you in the marketplace so it can be used as a useful (positive) marketing tactic.
Price setting can actually be quite complex, and knowing that you may have options could just help you find the right mix. Wikipedia has defined 21 different pricing strategies and you can find that list at the bottom of this article. However, if you look at the basic strategies, they include:
Competition based pricing: Setting the price based upon prices of the similar competitor products.
Cost plus pricing: Adding on a percentage (your profit) to that price to give the selling price.
Market oriented pricing: Setting a price based upon analysis and research compiled from the targeted market.
Affordability pricing: Setting a price according to what your customer will bear.
Don’t feel that you should simply follow the crowd. You have options – so consider them well and also apply different strategies for positioning your pricing in a way that differentiates you from your competition in a positive manner. Knowing really well how your customer or client perceives pricing (and makes buying decisions) will help you along the way.
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