Thursday, May 10, 2012

Pricing Your Competition: Do You Stack Up? (Recon Thursday/Price)




Hello, I’m Jim Glover, That Branding Guy, for Once a Day Marketing.  Today is Recon Thursday when we get you thinking about topics such as your competition.

Since we have been discussing pricing strategies, I thought we would dive into what you should be doing to ensure you are thoroughly familiar with your competitors’ pricing.

No matter which pricing strategy you pursue, you have to know what your competition is doing with respect to their pricing.  Are they pricing higher, the same or lower?  What is their positioning compared to yours?  What benefits do they offer their customers compared to the benefits of your product?  Once you have the background, then you can determine the best pricing strategy for your business.

Sometimes you are readily able to determine competition information.  Sometimes it’s very challenging and you have to be a detective.  There are numerous ways to spy on competitors.  If they have a retail presence you can be a secret shopper and look at their pricing.  You can also leverage the web; their social media efforts and advertisements and the promotions they run.  You may even want to seek others in the industry to provide insight around how your competition is pricing.  The objective is to be as knowledgeable about your competitors’ pricing as possible.

The goal of your pricing strategy is to choose a price point that will excite your customers and entice them to buy.  If you do a better job pricing then your competition you are going to gain a bit more market share and more dollars in your bottom line.

That concludes Recon Thursday.  Be sure to stop by tomorrow for Digital Friday.  We are unveiling the new LinkedIn Group called Once a Day Marketing, which is very exciting for us.  To discuss an online or face-to-face service engagement and enhance the marketing and branding for your organization, contact James Glover: (505) 501-1330 or onceadaymarketing@gmail.com.  I’m Jim Glover, That Branding Guy, for Once a Day Marketing and we’ll see you next time.

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