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.
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.
Everyone knows that they will have to pay for a product or service at some point, it's just a question of how much. Recently, however, it has become noticable that customers are proving to be tougher negotiators, both B2C and B2B. When it comes to selling, pricing is much more involved than just sticking some numbers on your goods and hoping for the best.
Gaining a competitive advantage is key in the ever-changing business world of today. ‘How do we get more business?’ is the continuous question.
About one-third of consumers are purely hung up on price, while the other two-thirds are open to at least hearing another argument, says Tom Reilly, an author and value-based shopping expert. "Value is always long term," Reilly says. "Price is short term". If your customer is fixated on price, the best strategy is to turn that to your advantage – it can actually help shape the value of your product and signal value.
Finding the right price management strategy is an important element in running a successful business. Naturally, as markets change, so do the strategies required for price management.
We hope your Christmas was a good one, but now it's back to work for the New Year with (here's hoping) renewed intentions and impetus to improve those margins. Unfortunately there are no quick fixes, "no work, no pain" will not boost your margins. It will require major strategic changes, but if you're truly serious about becoming more profitable, then read on.
2015 saw us move from being a casual poster, to a business who posts dedicated pricing content up to three times a week. Moira McCormick has done much of the hard work on this front over the last 12 months, and we thank all our visitors for likeing, sharing, and commenting. If there are any ideas you would like to suggest for next year - please fire away in the comments section below, and I can see if I can twist her arm to include!