Once a Day
Marketing™ featured video blog: Pricing
Strategies - Part 2
Hello,
I’m Jim Glover, That Branding Guy for
Once a Day Marketing™. Today we are continuing our look at
pricing with a review of four additional strategies.
Key factors that come into play when evaluating pricing
strategies are the uniqueness of your product and what your competition is
doing.
The first strategy we will discuss is called bundle. In this scenario various products are bundled
together and sold at a lower price than the individual items. Supermarkets frequently practice this method,
perhaps advertising bundles of house cleaning products or milk and bread to
entice customer to buy additional items.
Next is psychological pricing. Here you determine a price that will be seen
favorably in the eyes of your customers.
Would a customer be more likely to buy an order of French fries for a $1
or for $0.99? The actual difference in
price is negligible but psychologically the two price points are viewed very
differently.
Then we have premium.
A high price is established to create greater perceived value for the
product. Some consumers will gravitate
to a high price because they believe they are getting more for their money.
Last is optional pricing.
This strategy may be employed by a car dealer for instance. They offer a base model and customers are
given the option to add such items as stereos or leather seats to the product
for a higher price.
There are numerous pricing strategies available. Determine which are most appropriate for your
product and your market. You may want to
try different pricing strategies for various target customer segments.
Pricing is the only one of the 7Ps and changes don’t cost
anything to implement. Pricing drives
your revenue and eventually your profits.
It is essential to thoroughly evaluate the process of pricing and
impacts to your customers.
Once a Day Marketing™ positions brands to become #1 in the minds of target
customers. Visit our website at www.onceadaymarketing.com. Contact James Glover at (505) 501-1330 or email glover@onceadaymarketing.com. Listen to Ask Those Branding Guys™ every Monday
at 11:00am (MDT) streaming live on SantaFe.com KVSF 101.5 FM.
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