The majority of companies have difficulty in setting
the best price for their products or services. Setting optimum prices
should be an integral part of your marketing strategy - especially if
you wish to develop a strong brand and improve profitability.
If you provide a high quality product or service and sell it at the low price, human nature dictates that many of your customers will 'perceive' that something is lacking and often will choose a more expensive alternative that they feel more comfortable with - it isn't logical but in 99.9% of cases this is true. Many companies may choose to act aggressively towards weaker companies who threaten to affect sales of their key brands. Producing a strategic pricing model of how competitors and the market are likely to react is essential to protecting your business.
Remember to analyse your company portfolio and make any pricing decisions on sound marketing principles. Don't forget to take into account trends in new technology, maturity phase of your market and forecast for new entries and line extensions you envisage will come to market within the next 12-24 months. thinktank has vast experience in successfully setting prices for products and services in new and established markets. Contact us now for further information.
If you provide a high quality product or service and sell it at the low price, human nature dictates that many of your customers will 'perceive' that something is lacking and often will choose a more expensive alternative that they feel more comfortable with - it isn't logical but in 99.9% of cases this is true. Many companies may choose to act aggressively towards weaker companies who threaten to affect sales of their key brands. Producing a strategic pricing model of how competitors and the market are likely to react is essential to protecting your business.
Remember to analyse your company portfolio and make any pricing decisions on sound marketing principles. Don't forget to take into account trends in new technology, maturity phase of your market and forecast for new entries and line extensions you envisage will come to market within the next 12-24 months. thinktank has vast experience in successfully setting prices for products and services in new and established markets. Contact us now for further information.
