Pricing

Pricing is the process of determining what a company will receive in exchange for its products. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. Thus pricing is very important in marketing. 

Many companies make common pricing mistakes. Bernstein’s article “Supplier Pricing Mistakes” outlines several which include:

  • Weak controls on discounting
  • Inadequate systems for tracking competitor selling prices and market share
  • Cost-Up pricing
  • Price increases poorly executed
  • Worldwide price inconsistencies
  • Paying sales representatives on dollar volume vs. addition of profitability measures

Make sure you’re positioning yourself above your competition with aggressive pricing and thoughtful, concious marketing plans.