Pricing Strategy - Articles Explaining Pricing

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Small Business Pricing Strategies
Tips and examples of how small businesses can price for profit in a slow economy.

Introduction

It's tough out there, particularly because of layoffs and our sluggish economy. So what's a small business entrepreneur trying to make a living to do? Try these low-cost pricing strategies to keep sales moving.

TACTIC #1 -- Never simply slash your prices, unless you're trying to empty obsolete inventory.

Instead, try repackaging your prices so they're more affordable in the short-run so more prospects can afford them. For example, rather than pricing your service for the year, "Our monthly newsletter is only $39 for the year." Instead, try "Our monthly newsletter is only $3.25 per month." If you accept credit cards, it's very easy to setup reoccurring monthly charges that are billed to your subscribers without having to intervene every month beyond the initial account setup. The upside to offering your subscription on a monthly basis is that you can now market a $3.25 headline versus a more expensive $39 headline, a.k.a. you're able to offer services at a more affordable rate without slashing prices.

Here's another example...
Category: Pricing Strategy Articles (Part of Marketing 4 Ps)

Pricing Strategy Article: Making Sure The Price Is Right
Pricing is an often overlooked component of marketing's four p's. Here, the author discusses pricing as it relates to customer delivered value as well as considerations when lowering prices.

Introduction

Price, one of the Marketing Mix’s “Four Ps”, is an often-misunderstood weapon in the marketer’s arsenal. Too often, small- and medium-sized enterprises rely on Price to carry the weight for its “little brothers” - Product, Place, and Promotion - in the firm’s marketing battles. This is because of many firm’s misconception that they have little choice but to make sure their prices are comparable to those of the competition. Of course, a price that is way too high may simply make the product unaffordable. On the other hand, a low price provides little opportunity for new product development, expanded product placement, or creative promotional initiatives. As a result, once they start down the price spiral, firms often perceive the necessity to compete on price alone. This couldn’t be further from the truth.

The truth is that Product, Place, and Promotion are marketing weapons at least as valuable as Price. The trick is to learn how to use them well.
Category: Pricing Strategy Articles (Part of Marketing 4 Ps)

Pricing Your Service or Product: Things To Ponder
Article describes eleven things to consider when pricing a product or service.

Introduction

Terrific students attend the classes I teach. They ask profound questions that "stretch" my knowledge and resources. When I teach a building a business foundation owner class, I'm usually asked, "How does someone price a product or service?" During a recent class, I promised to write down what's in my head and send it to the students. And because of them, you now have it, too. In order to keep things simple, I'll use "services" to mean both services and products in the list below.
Category: Pricing Strategy Articles (Part of Marketing 4 Ps)

Pricing Strategies in Marketing
Price is an often overlooked marketing strategy, as many tend to focus on promotions or advertising. Pricing strategies, however, can have a large impact on sales and (more importantly) profit. The price is what your customer pays and/or what the end consumer pays for a product or service. In the case of products not sold directly to the end user, pricing is often described as “wholesale” and “retail.” When the distribution channel is long (such as when there is a manufacturer, broker/distributor, retailer, and end consumer), multiple mark-ups can occur between the wholesale and the retail price.

Your optimal pricing strategy will depend on more than your costs. Forces within your business environment such as your competitors, your suppliers, the availability of substitute products, and your customers come into play as well. Positioning (how you want to be perceived by your target audience) is also a consideration.

Pricing Strategies...
Category: Pricing Strategy Articles (Part of Marketing 4 Ps)

Pricing Strategy - Articles Explaining Pricing

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