Understanding different market based product pricing approaches Penetration pricing
#Competitor based pricing strategy software
Luckily there is software available to help you do this easily. Once you’ve created your pricing strategy, implementing it is the next challenge. There are endless strategies, limitless approaches the question arises as to which one will suit your business needs. You must study the structure of the pricing of your competition and why they are following a particular strategy.īy this time, you have gathered the necessary information now is the time to implement an action plan. For example: If you are offering the best-of-breed product, which meets the urgent needs of a customer ‘Value-based pricing’ will best suit your business!ĭ) Identify your direct and indirect competitorsĪnalyze your competitive landscape and understand the pricing model of the competitors. Are the products/services fulfilling the urgent needs of the customer?Ī business pricing model must align with what your customers want and why they must buy your product.
Is the product/service worth the price?.What value or benefit will my product/service bring to the customer?.In order to do this, ask yourself the following questions: So, if you plan to beat the higher priced brands and then put a significant emphasis on superior product marketing and delivery. Highly-priced products = Superior quality delivery + unprecedented customer service + high-quality marketing Another option is that your product is more valuable than your competitors’ in which case you need to make sure you market it as a premium product.ī) Beat the brands that sell highly-valued products/services If you are worried about running into losses, it might be time to take another look at your cost structure. Then your product/service must be priced accordingly. A) If your competitors have set low prices for a service
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