Fear? Not If You Use Competitive Intelligence The Right Way!

Holding your ground in today’s business environment can be scary. The competition is huge, the technology is advancing and consumers are becoming more savvy and demanding. This all forms a highly competitive market whereas competitive advantage can be as easily lost as it was gained. Businesses “live” in a world where information is widely available than ever before. Each day, there are massive amounts of data generated that just waits for it to be gathered, analyzed and used for best purposes. However, it often just floats around, which brings us to the word of the day (actually, two words): competitive intelligence.

In essence, competitive intelligence (CI) is understanding and learning about your products, customers, and competition, as well as every other facet of business in order to make strategic decisions based on knowledgeable insights. It a learning curve about everything that affects one business, from the tiniest details to global-like situations so it stands to reason there may be instances where CI is not used to the best of its abilities.

Theoretically, that’s all fine and dandy, but as we favor a direct and practical approach, here’s what competitive intelligence can do for your business.

1. Focus on what you want to know

Finding out everything about every competitor in the marketplace is a good idea, but not particularly effective if you want quick results in today’s fast-paced business environment. A better choice is to focus on a few specific business segments or problems whose understanding and addressing is key to company’s success. That way, the aim of your intelligence operation will be to collect information to help resolve the matter that matters to you the most. If that requires monitoring large companies for openings in the market, so be it, but try not to dilute your efforts too much. Collecting information for key strategic decisions and identifying new competitive threats is usually an ongoing, day-to-day operation in which you always need to have your goal in sight.

2. It’s not solely about your competition

We know what you are going to say – it’s precisely called competitive intelligence, not business intelligence or market intelligence or whatever adjective you want, therefore, it must be all about competition. Still, CI is a multi-layered business discipline that branches out like a tree from the earth. The focus of competitive intelligence in not on your rivals alone, it’s on the market as a whole and everything that makes it a highly competitive battleground.

 

demand for information

Source: B2B International

Failing to recognize the full value of competitive intelligence leads away from greater strategic flexibility. Using CI, a business can quickly adapt to market fluctuations and, if necessary, change its business strategy. For an example, we’ll use Pratt and Whitney, an aerospace manufacturer whose commercial engine division utilized CI by looking at all market aspects in an effort to stay competitive against its rivals, especially GE and Rolls Royce. As a result, the company deployed a highly successful breakthrough agenda for their new Geared Turbofan (GTF) engine, which wouldn’t be possible it P&W looked at each competitor separately.

Let’s get into specific details about what CI enables:

3. Perform win/loss analysis

A win/loss analysis requires surveying two groups of people

  • new customers
  • prospects attracted by competition

Why? You want to unfold and understand the reasons for their actions. During these interviews, it would be highly beneficial to ask your customers the motives for looking for your product and the reasons why they chose (or didn’t choose) your company, if they went with a competitor’s offering. Gaining insight from these simple, yet valuable questions will provide you with an understanding of your product among customers, competition’s selling points over your product, as well as what features are necessary to change or implement.

In 2015, Nestlé’s popular Maggi noodles had to be recalled from India due to containing a whopping seven times more lead (no big deal) that allowed. Up to that point, Maggi’s sales accounted for a quarter of Nestlé’s $1.6 billion sales in India, with the food giant having a 63 percent market share. The subsequent five-month ban of Maggi cost Nestle $277 million in sales with a half a billion dollars of damages to the brand name. However, Baba Ramdev, a famous local yoga guru and an owner of the growing local consumer goods company in India, launched a competing product (Patanjali noodles) to a great success. The key was catering to what people wanted to the product was marketed as a healthier option than Nestlé’s, while also having a lower price to incentivize sales.

4. Use competitive intelligence tools

CI presents a vast field of data that takes a considerable amount of time to sort out into actionable insights if you do it manually. Time matters greatly in today’s business operations which is why there are competitive intelligence tools that automate the process and provide real-time results. Therefore, a company should opt for a software solution that provides data about both your competitors and market, all the while keeping your budget in place and minimizing risk. What these tools offer are

 

  • Competitive market and competitor data (product tracking, industry trends, etc.);
  • Real-time intelligence;
  • Market gap minimization;
  • Predictive “what if” scenarios;
  • Time-saving through minimal human intervention;
  • Recommendations and more.

CI could also present you with potential problems regarding your sales approach, which you should discuss and coordinate with your sales team to correct.

Conclusion

Competitive intelligence, at its core, means learning as much and as quickly as possible about one’s industry in general, competition and market in order to be able to anticipate and face numerous challenges head on. In order to use competitive intelligence the right way, businesses must use it for insight management, not as a tool to search and distribute information. It allows a direct access to input into company’s strategic plans, smartly tapping a vast amount of external data to remain competitive.

CI has the power to be a facilitator of strategic advancement and change. Optimally, it will breed an organizational culture that relies on modern tools that provide real-time intelligence to deal with real-time challenges of ambiguity and prevailing competitors. It’s not enough to gather data and employ it, but rather to use it the right way as shown in this post.

What you should have asked your teachers about pricing policies in marketing

Pricing is considered one of the four basic elements of the marketing mix, together with product, place, and promotion. It is probably the least attractive element of the four in terms of marketing. The bulk of the marketing efforts goes to product and promotion before turning to pricing. However, the price is a rather flexible element of the mix and this post will show how.

We have already established that pricing policy is very important for a business that aims to gain success by finding the somewhat mythical price point where sales and profits enjoy maximum levels. A business might employ a variety of pricing policies and strategies, depending on its vision of marketing objectives and goals. It often seems like marketers have a nasty habit of underestimating the strategic importance of pricing. Those are probably the ones who missed the point (or a whole class) about pricing so they don’t perform revenue potential optimization. No worries, we are here to remedy that oversight. Here are some of the question you should have asked your teacher:

1. What pricing policy is best for marketing?

There is a no clear cut answer here as every business is unique. A pricing policy is set to reflect a part of a larger business strategy, accounting the principal market indicators like customer demand, supply, the profitability of products and so on. Pricing policy serves as a beacon for setting prices your customers can afford, not marketing it to them as something set in stone from the get-go.

2. What about my product?

Setting an adequate pricing policy requires serious market research and evaluation. Also, it must go in line with your overall business strategy and reflect the supply and demand relationship. Having a too low or too high price can hurt your business and your product equally. Here’s how:

  • If you set a price too low, potential customers might perceive it as an inferior quality, cheap product. This is fine if you are aiming to cover your costs and get a minimal profit margin. In that case, a cost-based pricing policy can do the trick as it will cover all production and delivery costs while attaining a certain level of profit. However, you lose any perceived value with your customers and potentially lose money in the long run.
  • If you set your prices too high, you might give off a feel of a high-end, prestige brand. This is a risky ploy as it should be guided by a demand-based policy, meaning there is a demand for your product at the price you are selling. Utilizing this pricing policy requires a comprehensive market research, best provided by intelligence tools with real-time insights. Otherwise, your product will be labeled as expensive and won’t sell.

The middle ground here is to evaluate the unique aspects of your offering and the consumer’s bond with it. That way, you are creating a perceived value for your customers and increasing their satisfaction. Once more, a company opting for value-based pricing needs to perform an extensive market research (really, it’s an essential part of modern business undertaking) to underline the value of your offering and thus motivate your customers to pay what you want as you’ve modeled your goods on what they want. An example would be car dealers who charge different customers and in a different situation.

Alternatively, you can opt for competition-based pricing whereas you assess your own goods, compare it your competition and then price it lower, higher or equal. It’s quick and relatively easy to implement with less market research, but it’s not quite accurate in terms of demand and your value.

3. Is there more than one market segment?

Of course and it’d be foolish not to use it to your advantage. Determining both primary and secondary market segments allows you to better understand how customers perceive your product’s value. Not every customer is the same and will not pay the same. Market segments are important for your company’s positioning and merchandising your goods to provide maximum sales at the established price points. Once again, this is where research about demand kicks in as you can fully use it to uncover where your potential customers are ready to pay more than usual.

4. Why does the pricing of my competition matter?

It’s perfectly fine that you want to be your own self, irrelevant of others. Nevertheless, what your competition charges matters in multiple ways:

  • You can base your whole pricing policy on the competition;
  • It affects your customers as the competition might define your price range;
  • It opens new opportunities for you.

Let’s say you are entering a market with a new product or a new market in general. One of the ways to price your product is to employ penetration pricing. This allows you to present prices with a steep discount, maybe even with a loss, all in hope to create brand loyalty and increase the willingness of your customers to spend more in the future. But how do you know if you can compete, you are not losing money right from the start by lowering prices too much?

It is tempting to price higher than your competition and certainly justified if there is a demand for it or if your product or brand is perceived significantly better. However, it a tough feat to accomplish. Let’s not forget that Apple spent almost all of the 90’s decade soul searching before it established itself as one of the tech leaders it is today, delivering high prices on quality-perceived products.

You can also price on parity if your offering product has better features or price lower if it has almost the same features to competing products. The key to competitive pricing is attaining insight from this detailed analyses that show how customers perceive and interact with your product so you can understand how they relate to it. This also includes analyzing thousands of competing products and how your competition reacts to you in order to package and promote your goods based on effective pricing.

Conclusion

As seen, pricing is an equally important part of the marketing mix as the rest of the elements. It can be rather tricky, but whatever you do in your marketing efforts, make sure you base your decisions on knowledgeable insights. It’s critical to know and monitor the market and your competition (especially their pricing) at all times in order to reassess pricing if necessary and stay ahead. There are tools that can help you optimize your prices. Market fluctuations and new products have the power to influence and change consumer demands and needs. Be the one that influences them.

Is your pricing enabling a healthy profit margin?

When a business sets its pricing policy, it looks to both make and save money while ideally increasing profit margins. This is an ongoing process that demands constant commitment through regular evaluation. Getting the pricing wrong can hurt a business and diminish its profit margins. And we all know that a solid profit margin is an essential part of financial health in the long run.

Profit margin is perhaps the most analyzed number during the company’s lifetime. It is a rather useful pointer that can help a company provide insight about a number of aspects regarding its financial performance, with profit margin fluctuations the ever-present subject of numerous analyses. In broad terms, low profit margins could suggest various problems. For this post, we are sticking with pricing, a very important factor in determining whether a low or high profit margin indicates a profitable business. We will mention different ways how pricing affects your profit margin and is it healthy enough or sustainable.

1. Have a long-term plan

Setting pricing for your goods should be a part of a larger plan, a group of multiple strategies to maximize your profits. A business needs to develop a plan that covers all the little ways of how products get sourced, distributed and sold, all the while monitoring the prices. The main focus is on the level of profitability of every product you sell. Make your items more valuable and competitive but also pay attention to those that may be losing money and turn them around quickly.

2. Avoid same profit margins for different products

What some companies fail to grasp is that price optimization leads to optimized profit. All customers have different perceptions of your goods and they assign different values to those same goods. Every product needs a price that shows the customer’s willingness to purchase it. This is a display of the customer’s perception of the value of your product that ultimately has nothing to do with the profit margin of other product lines.

Take Parker, the motion and control technologies company, as an example. In 2002, a new CEO determined to change the company’s uniform price policy across the entire range of 800,000 products. Understandably, the company was in a profit margin standstill until the change was made to switch to the new pricing scheme. As a result, the company gained over $800 million in profits during the course of seven years by solely focusing on its pricing.

3. Create perceived value with your pricing

A business should always set its pricing so it creates a perceived value for its customers. Perceived value is what essentially delivers purchases by attracting customers. You can see it all the time – people favor some shops because they believe they are getting the best deal around. This may be true most of the time, but even if it is false in reality, the perceived value is what makes them come back.

Naturally, this is all easier said than done, which is why mastering perceived value demands a thorough analysis of large volumes of data to recognize which option is best. Do you lower your prices to appeal to those looking for bargains or do you cater to those willing to pay premium prices because they believe they are getting a product with better quality? As there is plenty of market research involved, creating perceived value is complex, which is why your best bet might be utilizing some form of pricing intelligence software that significantly automates the process.

4. Don’t use cost-driven pricing

Among businesses, one of the basic calculations of setting the prices for goods is by following a simple formula:

  • the cost of the product + profit margin = price

It makes sense as you want your pricing to take into consideration the overall cost. However, even if you account the cost correctly and set a healthy profit margin, your pricing might still hurt you. Why? Because of the all-important customer perceived value. Understanding the cost part of the equation is important as there are various costs to account for (materials, time, manufacturing and distributing costs, marketing costs and so on) in order to achieve a reliable profit margin.

Still, basing your pricing on costs rather than customer’s perception of value takes away the customer’s willingness to pay as it might not believe the product is worth the price you set. The price is not the only factor that is important to a buyer. Recognizing and understanding how and why customers value your products will allow you to set a price that truly reflects that value and attain a healthy profit margin.

5. Segment your customers

As we mentioned earlier, customers have different requirements so you need to differentiate them into segments. Chances are, your company attracts a wide array of customers with particular demands and reasons. The value proposition for any of your products (or a variation of it) is different in different market segments. Hence, your pricing must reflect that difference. It should include tailoring the product and pricing strategies to specific customer segments if you want to attain the additional value created by these segments.

Conclusion

Pricing is a vital part of doing business, providing a competitive advantage and higher levels of profitability if done right out of the gate. To do that requires diligent work and keeping in mind the five point above. It all starts with a well-rounded agenda that follows the way of maximizing your profits. This includes having different profit margins for different products that have prices that best reflect the customer’s willingness to pay. Creating perceived value ensures you will attract customers and possibly retain them for multiple purchases. It’s not easy to master but with the right tools, it can be done. Avoid pricing your products based solely on costs – it does not reflect the true value of your product and it will turn your customers away. Finally, don’t treat all your customers the same as they ascribe different values to your products. Instead, align your prices with their value perceptions and enjoy increased profits.

3 Competitive Pricing Secrets You Never Knew

As pricing goes, competitive pricing is one of four major ways (the other three being cost-based, value-based and demand-based) how businesses set and develop their pricing policy. Basically, with respect to competitors, a company sets its pricing based on either lower, higher or roughly the same as it’s competition. Competition can be either direct or indirect. Direct competition happens when a company produces similar products that cater to the same group of consumers. Indirect competition exists when different companies make or sell items which, although not in head-to-head competition, still compete for the same share of the customers’ pockets.

A competitive pricing method is quick to implement as it doesn’t require as much in-depth market research as some other pricing methods like demand-based or value-based pricing. Instead, its foundation lies in the prices companies that sell similar products set. This way, a company can rapidly attract and influence customers because there is already a potential pre-established customer base. However, a competitive pricing policy has its own advantages and disadvantages that companies looking to implement should be aware of. In this post, we’ll show you three competitive pricing secrets that can help you boost your business.

1. Underpricing can harm you in the long run

A common occurrence in the e-commerce world is that companies often turn to underpricing their goods believing lower prices or being the least expensive solution will drive sales volume. While the theoretical basis is sound, the practical part carries two big downsides.

  • Pricing your products lower than your competition takes a toll on your bottom line. Sure, lower income is better than no income but you are needlessly leaving money on the table and seriously thinning and decreasing your profit margins.
  • You lose any form of brand recognition, at least the good one. Being too cheap might signal customers your product is shady and possibly of questionable quality, ultimately steering them away to your competition.

Underpricing is typically a result of lack of knowledgeable insights. It’s essential to avoid crossing the line between providing competitive pricing and underpricing. Pricing intelligence tools assert themselves as the logical solution in this case, as they will provide data driven insights to help a business stay competitive without underpricing.

2. Lower your prices the right way

Continuing the subject of lower prices, here is another thing that you might not know. Chances are, there is a group within your target audience that perceives your pricing a bit expensive. This might pose a dilemma – to cater to them by lowering your prices or not?

Consider resorting to alternative measures such as offering buyer benefits in order to be more appealing. For instance, you can offer brand club membership with exclusive coupons and discounts. The essence of this method is that you are not lowering your price in general but offering special prices to specifically targeted customers at specific times.

Lower your prices

Source: Harvard Business Review

Another way to achieve this is by offering less product or service for the same price. Taking into account your customers, product proportions and sizes and order sizes can effectively reduce your costs and produce a desired result without reducing the value to your customer base.

Fairly recently, the maker of Toblerone, popular Swiss chocolate, changed the overall look of it and reduced the overall amount of chocolate from the 170-gram and 400-gram milk chocolate bars (about six ounces and 14 ounces) to 150 grams and 360 grams in order to reduce cost because the necessary ingredients achieved higher prices. The company said the effect of the changes was less noticeable, thus continuing the established practice of companies trying to avoid price increases by reducing the contents of their product. Most consumers are not aware of the alteration because the product usually looks the same and has the same price, the only difference there is a tad less of it.

The same can be done with other aspects of your product like shipping. Instead of offering a two-day delivery, a business can switch to three-day deliveries, saving enough money to keep the existing price without decreasing its margins.

3. Reframe your product

This is an effective method that provides lots of breathing space for experimenting what works and attracts customers and what repels them. You will often find the term “psychological pricing” (also known as odd-even pricing) accompanied with the example of charging $9.99 for your product instead of $10.00. This way customers feel they are getting a fair, lowest or best possible price.

Simply switching up the product description can play a large role in selling your product. For instance:

  • Selling something that costs “$10 per month” rolls better of the customer’s tongue than “$120 per year”, even if those price points are exactly the same in the end.
  • Changing a $4 shipping fee to “only a $4 shipping fee” or “a small $4 shipping fee” could increase the response rate among those hesitant to commit to a purchase.
  • Another way to reframe your product is to provide a “free shipping” benefit with the actual shipping costs included in the product cost.

Conclusion

Balancing competitive pricing with profit margins can be a difficult task without proper tools (and secrets) of the trade. It’s important to understand what can propel you in the business environment, as well as hurt you in the long run. The most valuable pricing methods consist of constant planning and management, as well as competitive price intelligence, which ultimately points to pricing software. It joins big data with historical information to help retailers set the prices of their products in accurate and timely fashion.

Having in-depth knowledge of your market and target audience is vital. Lowering your pricing can certainly be a tempting proposal, but it can also cost you money if you lower it too much. Also important is knowing how you can appeal to customer’s price consciousness by reframing your price to appeal even to those hardened buyers. Keeping the competition factor provides a fast way of scoping the market and setting prices accordingly. By utilizing these little secrets, you will avoid the pitfalls of competitive pricing and turn them to your advantage.

How your pricing policy affects your sales

Price optimization is one of the key factors in every business operation as it can raise prices whilst improving sales volumes at the same time. Savvy pricing managers will implement it and focus on building their business to cater to the most profitable customer. However, that sounds easier in theory than it is in practice as numerous companies utilize simple pricing policies without identifying important market indicators like the products that are most profitable and customer demands, among others.

Therefore, the decision-making processes are based on the lack of knowledgeable information which leads, in most cases, to bad pricing policies that don’t perform nearly as well as they ideally could and should. Pricing policy has a direct impact on total business revenue and as such, must be carefully thought out. There are best practices companies use to determine and develop their pricing policy. In this article, we’ll show you some of those practices and how they affect sales.

Cost-based pricing policy

Cost-based pricing is determined by adding a fixed profit percentage to the overall cost of a product or service. The end results is a selling price that aims to cover all the costs during production or delivery stage and attain a certain level of profit.

The policy is simple and fast to implement as it doesn’t require much market and competition research. That is why cost-oriented pricing is also extremely popular because it uses information managers can obtain very easy. In addition, the company can easily present a case for defending its prices as they cover the costs for the most part.

Nevertheless, the main drawback of a cost-based pricing policy is its ineffectiveness. Determining costs before pricing is not suited for today’s markets as costs vary depending on volume. In turn, as the price forming is driven solely by costs, this significantly reduces profitability because these prices don’t reflect the true value of the market. In fact, they are closer to being completely opposite to strategic prices as there is no consideration of market conditions.

Joel Dean, professor of business economics at Columbia University, says that “cost is usually the crucial estimate in appraising competitors’ capabilities”, which is what a cost-based pricing policy completely ignores. It also ignores the role of customers, which are two main reason why it usually affects sales in a bad way as it doesn’t take into account these vital factors in order to determine what specific products it wants to manufacture, as well as the quantity of it.

Value-based pricing policy

In this case, the optimal price is a combination of customer’s perception of the value of offered goods and production costs. Companies that use this approach from their prices based on market research such as customer demands, expectations and preferences, financial resources and competition.

Value-based pricing increases profitability by creating customer satisfaction through product’s value attributes. This approach emphasizes the value of your goods and presents the motivation for customers to pay more as they are modeled on what customers want. Also, managers must perform extensive market research and compare what their company is offering with those of their competitors, in order to pinpoint their value, advantages, and disadvantages. That way, they can get a clear picture of what sells on the market and what doesn’t.

Demand-based pricing policy

Similar to value pricing, there is no immediate concern regarding costs. The focus of demand-based pricing is on customer behavior and the quality and attributes of own goods, thus satisfying the level of demand. The prices are formed by accounting both the cost estimates at different sales levels and projected revenues from sales associated with estimated prices. The vital part of the process is accurately

The vital part of the process is accurately determining demand that is the amount of products or services that the company can sell so that the prices can be formed. Thus, a manager needs the assistance of a market expert, preferably a comprehensive software suite with high levels of automation, to estimate increases or decreases in demand. In turn, this will result in prices that will help a business stay ahead of its competition because they will have a comprehensive summary of the ongoing demand trends and thus, produce adequate quantity and quality of products.

Competition-based pricing policy

Finally, we have a policy that forms prices by looking what others are charging. After identifying competition, a company first assesses its own goods and then prices them lower, higher or equal to the competition.

As is the case with cost-based pricing, this policy can be set up quickly as it doesn’t include thorough market data, meaning it’s not as accurate as demand pricing. Still, it enables a business to select different pricing strategies to achieve its goals. Because it can set a higher, lower or on par price compared to its competition, a company can quickly attract and influence customer perceptions of their products because they already have a pre-established customer base.

As an example, company A can set its prices above those of its competitors, which could suggest to customers that its products feature higher levels of quality. This can be seen on an example of Harley-Davidson, who uses much of the same parts suppliers as other big bike companies like, Kawasaki, Yamaha, and Honda. However, because they set their prices above those of the competition, their above-the-market pricing, along with customer loyalty and a certain sense of mystique, signals quality to customers and makes it easier for them to opt for the premium they pay for.

This can be seen on an example of Harley-Davidson, who uses much of the same parts suppliers as other big bike companies like, Kawasaki, Yamaha, and Honda. However, because they set their prices above those of the competition, their above-the-market pricing, along with customer loyalty and a certain sense of mystique, signals quality to customers and makes it easier for them to opt for the premium they pay for.

Effect on sales

Every pricing analyst and expert knows that profit is optimized for every product when the price reflects the customer’s readiness to pay. As Warren Buffet once said:

“Price is what you pay, value is what you get”

meaning business need to look from the customer’s perspective. Hence, pricing must be constantly evaluated based on the customer return and feedback. That is why cost-based pricing policy is a bad fit as it produces little customer return, hence lower sales. The other three pricing policies all have their advantages with one joint factor – market research. Each policy demands a thorough understanding of market trends, competition, customer demand, and needs, as well as production operations for minimizing costs and increasing profit.

This can be a time-consuming and expensive process, which is why the best option here is to utilize an expert pricing software that can provide valuable insights and help make an informed decision. As this requires a large survey of market conditions, an ideal option would be a highly automated software that offers comprehensive solutions for your pricing needs. It could also provide you with an analysis of how competition reacts to your pricing on a regular basis. The key is to make a customer-appealing pricing policy that will balance competitive pricing with satisfactory profit margins by focusing on the value the company delivers to its customer.

Conclusion

Setting a pricing policy means determining prices customers can afford before deciding what products to produce and the general amount of them. Adding in the fluctuating prices and the overall production costs it can pay for, a business can determine whether it can compete in the low-cost market, where customers are first and foremost concerned with the price, or if it can successfully compete in the premium-price market where customers’ primary concerns are the quality and characteristics of your goods. In either case, it means keeping up with constant changes on the market which can be a tough task without help.

Be Sure To Avoid These 5 Strategic Pricing Mistakes

Pricing strategy is rightfully one of the most heavily debated aspects of any business. No matter what your product is or where you lie within your industry, your price point will inescapably be among the biggest questions you have to consider. Continue reading “Be Sure To Avoid These 5 Strategic Pricing Mistakes”

How to Take Advantage of Variable Pricing and Win More Customers

With the rise of online retail, the sales game has evolved by leaps and bounds. Strategies that once proved to be surefire ways to secure business have become obsolete, leaving companies scrambling to develop new tactics to beat out their competitors and rein in customers.

Still, while much has changed in how sales-driven businesses approach the future, at least pricing remains a constant factor in persuading consumers to consider one company over another for the same product or service. One such strategy that seems to be heating up is variable pricing. Let’s look at this one a bit more closely. Continue reading “How to Take Advantage of Variable Pricing and Win More Customers”

How Automation Fulfills Demand Based Pricing

Demand-based pricing is one of the simplest ways to price your products in a way that maximizes their chances of actually selling. Rather than relying on industry trends, your own product history, or a gut instinct about what a product “should” sell for, demand-based pricing uses what customers think about your product as a starting point for pricing your products. Continue reading “How Automation Fulfills Demand Based Pricing”

5 Powerful Psychological Pricing Strategies

If you think your small brand can’t compete with the big box stores, it’s time for a reality check. Consumers gleefully buy from businesses of every size. Even the smallest brands can gain a dedicated, cult-like following. To do so, you need more than just an amazing product and incredible customer service. Continue reading “5 Powerful Psychological Pricing Strategies”

5 of the Best Penetration Pricing Examples

Customers can’t buy products they don’t know about. And in a market heavily driven by consumer trust and brand loyalty, many consumers are reluctant to switch brands or try new products. After all, the reasoning goes, why spend money on a product that might be awful? Continue reading “5 of the Best Penetration Pricing Examples”