Creating a Pricing Strategy that Works in this Economy
You must create an experience that makes a consumer want to purchase from you. You can draw some consumers strictly on price, but the problem with that is they will leave you if someone offers them a lower price, is that really the loyalty that you want to attract?
When you create an experience and you give consumers exceptional service you will gain committed loyalty from consumers. This is the loyalty that will keep consumers coming back to you, even if you don't have the lowest price.
With that being said, I know that many companies struggle with price setting. How do you know if you've set the right price for your product? Great question, in this week's article we discuss the promise of price and how you can set and get the right price for your product or service.
I have to agree with almost everything that has been written in this article but wanted to add two things.
Firstly most people buy based not on price but on emotion and then use logic to justify their decision. For example emotionally they just have to been seen in a Ferrari and justify it by being logical – it is a good investment, it will get me to meetings quicker, it will fit in my garage.
Secondly instead of dropping prices when times are hard do the opposite. All your competition are cutting prices so raise yours. It differentiates your prodcut as being premium ans it is a lot easier to make a profit (with fewer sales).
Many times consumers forget that everything in life is negotiable. Looking for discounts and doing a comparable analysis, is an important part in any trade.
consumers should quit buying on emotion e.g consumers have a tendency of buying products/services knowing vey well they cannot afford them, so people should stick to living standards that match their financial stability.
Your article is nice, i like it.
I want to add one thing. Consumers often consider among some factors, including price,brand,quality,service, and then choose the best performance cost.