Last week’s marketing tip kicked of the four part “Back to Basics” series. Every marketing principle/strategymust begin at square one: the 4 P’s of Marketing. This is a basic concept that marketing students learn in the beginning, however, by analyzing your 4 P’s, you can uncover new ways to better market your company. The 4 P’s are Product, Price, Place, and Promotion. Last week we discussed Product and this week we will cover Price.
Understandably, this may be the most difficult components to alter to the needs of your business. Obviously, you must make a profit but your prices must be within the means of your customers and what they are willing to pay.
There are two dominating factors when analyzing the price of your products: competitor pricing and customer perceptions. You must be aware of how your competitors are pricing their similar products. If they are offering prices much lower than what you can afford, there are other ways to stay competitive. In this case, you must create the quality in the product that the customer is willing to pay for. Given that the customer has the appropriate means to buy your product, you must give them a reason to buy it (this reverts back to the product.)
You have two options. You can find ways to cut costs to offer the lowest or highly competitive pricing. The other option is to create quality in your product that customers are willing to pay for. You must plan your pricing strategy carefully because it will determine your profits and losses.
Other factors to consider regarding pricing are discounts. Are you willing to offer specials and discounts to your customers? Are you going to offer seasonal discounts? If you are a wholesaler or distributor, are you going to offer bundling prices for bulk purchases? These tactics are great ways to increase customer loyalty but you must be aware of potential losses and be willing(and able) to accept those. If you are a reseller, store, or shop, will you offer frequent buyer discounts/specials?
FYI: If you are a FG Market Vendor, make sure that your discounts/offers are listed on your FG Market Specials and Promotions Page!
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