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You may already think you're a bit of a pricing genius?!! You may have already settled into your first few months on the job. Maybe you've got that good degree - or even an MBA? Perhaps you've moved rapidly through the ranks and have landed a pretty amazing job in the pricing world. Are you sure however that you ALWAYS utilise your skills, expertise and know-how to squeeze out those extra profits for your business?

Pricing is based on three critical points:

1. What your product or service is worth to your customers (it's value).
2. What it costs you to produce your product or provide your service.
3. The price your competitors charge.

In Part One we looked at B2B Pricing Challenges. In this following on article, we're exploring Business-to-Consumer Pricing Challenges (B2C). Charging the correct price for your product or service can be a tricky business – getting it right (or indeed wrong) can have a dramatic effect on your sales and profits.

Pricing can be a scary topic. You’d probably much rather talk about your products or services, or how you can be of assistance to your customers. You've attracted a potential client, you don't want to put them off before you've even got going!! It's necessary however to face the fact that pricing is just as important a concept to communicate as the excellent features of your product or the benefits of your service.

Introduction

Pricing can be approached at three levels - at the industry, market, and transaction level.

Pricing is one of the four major elements of the marketing mix. Your pricing strategy naturally involves evaluating the price you will charge for your product or service, and how this price fits in with your overall marketing plan, but are you covering all the bases? This article looks at some of the critical elements that can be forgotten by a pricing manager.