Sticky Notes Showing Currencies - Marketing Budgets - Real Marketing Specialists

Price is the most difficult ‘P’ in the marketing mix to get right.

31st May 2015

Have a clear pricing strategy

Getting your pricing right can have a big impact on the growth of your business or its very survival. Your prices affect the demand for your products. That’s why your prices are a key ‘P’ in the ‘marketing mix’ and why your marketers should have a role in setting your prices.

Your prices should be a function of the customer value that your products and services deliver.

Your pricing needs to reflect your position in the market relative to your competitors. It should usually be based on ‘market pricing’ but should also make sense on a ‘cost-plus’ basis. Clearly, your prices have to provide an adequate profit margin.

Almost every small business I have ever worked with doesn’t charge enough for their products and services. This is due in part to a lack of confidence, in part to a feeling of competition, and in part because they have never strategically educated their clients on the value of what they have to offer.
John Jantsch, Duct Tape Marketing

John Jantsch, Duct Tape Marketing 31st July 2015

More than half of SMEs try to compete on price, which can have a negative impact on profitability. Don’t take this dangerous but tempting route unless your business is called Lidl, Poundland or Ryan Air!

  • Businesses marketing superior products or services should be charging higher prices that reflect their value.
  • Your products can be both expensive and really good value.
  • Build a brand to help you charge higher prices.

Price, as I suspect you’ve learned, is a terrible place to compete. There will always be someone willing to go out of business faster than you.
John Jantsch, Duct Tape Marketing

John Jantsch, Duct Tape Marketing 9th January 2016

Contact Christopher Lamotte (via email or on 07957 870071) for a pricing review if you need some help with your pricing and other areas of your marketing.