![]() ![]() Let’s take two of the most successful smartphone brands at the moment. However, it is a risky move, since you have to consider your profit margin, and you don’t want the lower price to negatively affect your brand’s image. If you are new and trying to get your part of the market share or just trying to survive in a competitive market environment, this pricing method might help you. Go below the price of your competitors – here you need to be careful.So, if you can offer more than your competitors, this might be a good strategy for you. When you do this, the price as a factor is eliminated, so the focus is moved to the brand itself and on features, the product can offer. Following competitors’ prices – you can set your prices to be equivalent to the prices of your competitors.But you need to be careful – if you want to charge more, you need to offer more, so think about extra features and premium options your service or product can offer. Even though it might not sound like an intuitive move at the first glance, setting a higher price can help you with your brand’s image. Go above the price of your competitors – this strategy can be used when you decide to increase your revenue and even try to increase sales by setting a higher price compared to your competitors.When it comes to competitor-based pricing, you have three options: This pricing method is usually used for homogenous products in highly competitive markets and can be also referred to as market-oriented pricing. We will then consider the advantages and disadvantages of competition-based pricing and give a small guide on how to perform competitive pricing right.Ĭompetitive pricing or competition-based pricing is a pricing strategy where you take into account the prices of your competitors when setting your products’ prices. In the following paragraphs, we will try to explain what is competitive pricing and provide some real-life examples of it. This is why we believe that competitive pricing is one of the best yet simplest pricing strategies in a long term. The other thing is, you should be aware that you are not working in a vacuum, so, not considering your competitors’ prices when making a pricing decision can be a fatal mistake. So, the right pricing strategy is an essential part of a good business, but with so many pricing models out there – it’s not easy to make the right choice. ![]() agree that price is more important than brand when buying a product. It’s no surprise that 60% of internet users in the U.S. There is no doubt that price is the most important factor for consumers when paying for a product or service. Minimum Advertised Price (MAP monitoring). ![]()
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