Sales Success:

Winning Customers

Effective Pricing

Pricing Strategies and Principles

By: Vadim Kotelnikov

Founder, Ten3 Business e-Coach Inspiration and Innovation Unlimited!

 

"Price is what you pay. Value is what you get." – Warren Buffet

Differentiation Strategies Business Strategies Effective Pricing Competitive Strategies

 

Five Components of Marketing

  • Planning

  • Executing the conception

  • Pricing

  • Promotion

  • Distribution

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual or organizational objectives.

Three Basic Pricing Strategies2

  • A Skimming Strategy: If your offering has enough differentiation to justify a high price and you desire quick cash and have minimal desires for significant market penetration and control, then you set your prices very high.

  • A Market Penetration Strategy: If near term income is not so critical and rapid market penetration for eventual market control is desired, then you set your prices very low.

  • A Comparable Pricing Strategy: If you are not the market leader in your industry then the leaders will most likely have created a 'price expectation' in the minds of the marketplace. In this case you can price your offering comparably to those of your competitors.

 Discover more!

Winning Customers

Creating Customer Value

Customer Value Proposition

Unique Selling Proposition (USP)

How To Avoid The Most Common Pricing Mistakes

Sales Success

Negotiating Tips

Price in Terms of Value

The best price is always the one that provides you with the most long-term profits. Price in terms of value rather than cost. Cost-plus pricing is  worst choice. When you start pricing more intelligently, you will have a real advantage over most of your competitors.

Creating Customer Value: 9 Questions To Answer

 

Competitive Strategies

Don't Price Too High or Too Low

If your price is too high, your sales will be hurt. But this can also be true if you price your product too low, advises Derek Gehl from Internet Marketing Center. People think it's probably "too good to be true" and get suspicious when the price is far below their expectations. As a result, they don't feel confident making a purchase.

Free or No-fee?

You may wish to offer complimentary products, services, and other benefits to your customer. Should you call them "free" or "no-fee"? Call them "no-fee" wherever possible. Why? Free and no-fee look, sound and feel different. "Free" suggests there may not be a great deal of value. "No-fee" suggests that there is customer value, but you are giving it as a gift.

The Tao of Pricing

By: Marlen Jensen3

Bringing Eastern enlightenment to Western marketing strategy.

Smart Discounting

Clever are discounts that commit a customer to you for further sales.

Examples:

Discounted razors, when you sell razor blades.

Discounted ink jet printers, when you sell ink cartridges.

Premium Pricing

Know your customers. If a man known for his cheapness buys from you... raise your prices immediately.

Even the "monetarily challenged" can enjoy splurging or treating themselves to a relatively expensive candy bar, shampoo, or after-shave... More

Winning Customers (PowerPoint download)

 

 

References:

  1. Agenda, Michael Hammer

  2. "Marketing Plan", Business Resource Software, Inc.

  3. Pricing Psychology Report, Marlene Jensen

  4. Winning Customers, Vadim Kotelnikov