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.
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.
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.