Pricing is a critical element in generating more sales or getting more customers for the products or a service you offer.

Econsultancy columnist Min-Jee Hwang has shared five tips to help marketers decide a right pricing policy for their products.

Hwang says, “Your strategy for different categories across your business won’t necessarily be the same. For example, perhaps you are well known for having the best deals on computers and want to implement lower prices to be more competitive on your most popular category.

At the same time, you can make back margins on other categories. Because of this, it’s important to track where you stand not just at the SKU level and ensure that you’re positioned strategically in the market. This also helps ensure that consumers are perceiving your brand the way you want them to.

Making price position data actionable

1. Understand and respond to market changes

Competitors can change their pricing at any time, altering where you stand relative to them. Tracking competitor pricing allows you to respond quickly to maintain your price position.

You can also track how the market responds to your own price changes to help optimize your own strategy. You’ll likely notice that certain competitors consistently change their prices around your own and are actively trying to undercut you”.

Why protecting your competitive price position is critical to profitable growth

Econsultancy
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