How To Price Effectively
How To Create An Effective Pricing Strategy
How to Price Effectively is a practical and complete guide to help entrepreneurs and managers make good pricing decisions. Setting the price of a product is not only a crucial task in the long list of activities a company has to do, but it is also one of the most difficult, as well as being an ongoing process. Periodically, the time for price setting comes back around for every entrepreneur, having to update existing prices, or to set new ones. Utpal Dholakia proposes a strategy to optimise the decisional process, studying and analysing costs, customer value, reference prices and the company’s own value proposal.
Many useful tips to:
- Help managers and entrepreneurs structure a method for making pricing decisions.
- Understand that an effective pricing strategy is a company’s most valuable marketing tool for driving profits.
- Demonstrate that the price of a product needs to be consistent with the company philosophy and value offer.
It is important to have a structured method that helps us to determine the price of our products and services
Pricing is one of the most impactful aspects of any business, but it is also one of the factors that both managers and entrepreneurs fear the most. It is a kind of recurring decision that isn’t made just once, to remain the same forever, but that requires continuous analysis and updates. In fact, all companies find themselves regularly having to set pricing for new products, or to change the pricing of already existing ones. The way a product’s price is set is rooted in the company culture and is heavily influenced by its value system. Since every choice carries a certain risk, having a structured model in place could prove to be extremely helpful for a company. The value pricing framework (a marketing model based on value) offers a tried and tested method, to help make and implement good pricing decisions, which is structured, versatile and complete. The framework is useful to convey trust in our products, and to satisfy both our clients and trading partners, while also providing ourselves with a better understanding of all the factors that affect pricing decisions.
The key ideas of "How To Price Effectively"
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