When pricing, a seller must always consider the costs of shipping goods to the buyer. These costs grow in importance, as the freight becomes a larger part of total variable costs - quantity, weight and distance from seller will generally increase shipping costs considerably. Pricing policies can be established whereby the buyer pays all the freight expense, the seller bears the entire cost, or the seller and the buyer share this expense.
Just how do consumers choose one retailer over another if the prices for the same goods are similar - or even exactly the same? Being the cheapest doesn't always win the sale and chances are that those consumers will be swayed to choose the retailer that offers the best product information, customer service/support, ease and timeliness of ordering, delivery and returns etc.
As a retailer it stands to reason that you'll need to offer excellent service to your existing customers to keep them loyal - and to ensure you win new customers along the way. However, there are also some competitive pricing strategies you should try as well to win the day, so read on...
Price optimisation is the process of finding that pricing sweet spot, or maximising price against the customers willingness to pay. Companies up and down the supply chain, both in B2B and B2C settings, rightly dedicate a massive amount of time towards price optimisation to ensure that their products will sell quickly at the right price while still making a decent profit.
Topics: Price Optimisation
Pricing matters - it's one of the classic “4 Ps” of marketing (product, price, place, promotion). It will be a key element of every B2C and B2B strategic plans. A case in point would be Bryant Homes Pricing Strategy. They operate in a highly competitive market but Bryant is able to price its products in the premium range because it offers some of the very best homes (product), in attractive and sought after locations (place) and its promotional literature reflects an upmarket image.
Want to increase revenue? You need to grow to survive. Specifically, you must expand your customer base and increase your revenues.
The fastest and most effective way for a company to realise its maximum profitability is to get its pricing right. The right price can boost profits far quicker than increasing sales volume; the wrong price can shrink profits just as quickly.
Determining price is one of the toughest things to do in business, largely because it has such a big impact on your company’s bottom line. One of the critical elements of pricing is understanding what economists call price elasticity.
Topics: Price Elasticity
What is Promotional Pricing?
Promotional pricing is a powerful sales tool, used to increase the demand for a product, particularly among price-sensitive consumers. This marketing strategy involves reducing prices by a certain percentage for a limited period, hence, positioning an item as on sale. This tactic is often employed when launching a new product line as a way to incentivise sales. Today, we'll explore promotional pricing in detail and take a closer look at its forms, benefits, and drawbacks.
What is the Pink Tax?
Despite leaps and strides in the fight for gender equality, one area that remains conspicuously unfair is the price disparity between men's and women's products, often referred to as the "pink tax".
Understanding Cost-Plus Pricing
Cost-plus pricing has a longstanding history as a standard approach for setting prices for many B2B and B2C businesses. It's a model that prizes simplicity: tally up all the costs involved in the production or manufacturing of a product, set a margin that reflects your desired profit, and then add this to your total cost. This yields your selling price.
Topics: Cost-Plus Pricing