Pricing - you decide what action to take Pricing is how you communicate value and position your product. Business success is about profit, not revenue. You cannot pay bills, and provide pay checks, with revenue - only with profit. Again, pricing is how you make a profit. Pricing rule of thumb: never, ever drop price. It will be too hard to get it back up. So, your sales team comes to you as the Marketing Manager and they say: "Our prices are too high, we are not competitive." What do you do? Tip - think 4Ps. Could it be something other than price?
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
Pricing - you decide what action to take
Pricing is how you communicate value and position your product. Business success is about profit, not revenue. You cannot pay bills, and provide pay checks, with revenue - only with profit. Again, pricing is how you make a profit. Pricing rule of thumb: never, ever drop price. It will be too hard to get it back up.
So, your sales team comes to you as the Marketing Manager and they say: "Our prices are too high, we are not competitive."
What do you do?
Tip - think 4Ps. Could it be something other than price?
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