Pricing strategies for products or services encompass three main ways to improve profits. These are that the business owner can cut costs or sell more, or find more profit with a better pricing strategy. When costs are already at their lowest and sales are hard to find, adopting a better pricing strategy is a key option to stay viable.
Merely raising prices is not always the answer, especially in a poor economy. Many businesses have been lost because they priced themselves out of the marketplace. On the other hand, many business and sales staff leave "money on the table". One strategy does not fit all, so adopting a pricing strategy is a learning curve when studying the needs and behaviors of customers and clients.
Read more about Pricing Strategies: Nine Laws of Price Sensitivity and Consumer Psychology
Famous quotes containing the word strategies:
“By intervening in the Vietnamese struggle the United States was attempting to fit its global strategies into a world of hillocks and hamlets, to reduce its majestic concerns for the containment of communism and the security of the Free World to a dimension where governments rose and fell as a result of arguments between two colonels’ wives.”
—Frances Fitzgerald (b. 1940)