Customers love to have choices. With the incredible amount of information at our fingertips, the array of choices can be a bit overwhelming for the buyer. Price can oftentimes be the basis for comparison because it is the only “known commodity” in the search initially. When launching a new business or growing an existing one, setting up a pricing strategy can be one of the biggest challenges a company can face. Here are some suggestions to help you determine your best pricing strategy:
Know Your Audience
The pricing strategy that you choose may be dictated by your competitor’s price or by the value that you provide to the individual customer. If you sell a product or service that is enjoyed by a broad audience – like office supplies – your price point will be critical to the customer’s decision. If you are selling luxury cars – your price point may be secondary to the status, benefits and value that this customer will enjoy with the purchase.
The Price Is Right
Should the price be set low to get the customer in the door, or high to give room for a price cut in the future? If priced right and marketed properly, you shouldn’t have to raise and lower your price to compete in the market.
If price is a key deciding factor for your product, it’s time to get creative. Focus on and highlight the value of what you have to offer to the customer, this is what we call the “value proposition” – the benefits of buying from you. The value proposition will set you apart from your competitor and the unique quality of what you have to offer will lessen the focus on price for the customer.
At R2R Marketing, we know the impact a strategic and professional marketing campaign can have on the success of a business.We have been providing marketing services to clients across the country for over a decade. Call or contact us today at 757-482-3492 and let us take care of all of your marketing needs!