Benefits of having a good pricing strategy

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You will also need to consider your brand positioning, the intrinsic value of your product, and the added value your company can provide to each customer.

Depending on these issues, you can follow two different paths to set the prices of your products and/or services:

Set your prices according to the market and its fluctuations.
Set your prices based on the added value your company provides.
I'll tell you how to follow each of these paths and in which cases each of them is recommended:

1.- Market-based pricing strategies
This involves setting your prices based on supply and demand.

It is a strategy that focuses solely on the market and not on the value proposition or your tastes or preferences for products or services.

It is widely used, especially in the retail sector, where commercial margins are at stake.

It is usually applied to products that can be easily replaced, although it has also been seen with services, such as the famous case of Media Markt and its community manager services .

If you offer digital services, I do not recommend this type of strategy.

If you have a worthwhile business (and I count on it), you can offer a lot to your clients and you have to transmit it to them.

If you don't care about your value proposition and how to differentiate yourself, you can be replaced at any time.

This strategy is not the way to make your business more profitable dubai whatsapp number either. Don't think that because there is a lot of demand for something specific, you have to sell it yourself.

In these cases, prices are almost determined by supply and demand, and raising them would break the market.

Also, I remind you that pricing strategy is not just about profitability.

And profitability does not only consist of detecting what you sell the most , but what leaves you the greatest commercial margin.

2.- Pricing strategies based on added value
With this strategy you can set your prices and profit margin based on the added value you bring to your services.

It's not that you don't take market prices into account, it's that you know you're going to contribute more and, for this reason, you set the price taking into account your added value.

Logically, in this case the profit margin is higher, and depending on your strategy you may need to sell fewer units to reach your objectives, if we are talking about services.

It's a good way if you want to differentiate yourself from your competition .

Create a brand with authority, provide value and be the best in your services by creating a unique experience with your clients.

By doing so you will deal with clients who want to work with you knowing that you are worth the price you ask.

Do you want to increase your prices? Well, you know, increase your value.

What is the importance of pricing strategy in your business?
You need to be clear that the time you invest in your business: administration, emails, management, training, execution... you have to pass it on to your clients through the price they pay.

Yes, even the free time you want to have, because with your business you not only sell your talent, your knowledge or your product, you sell your time and time is money .

A pricing strategy will help you sell your services and products at the price they deserve, which makes it an extremely important resource for your business.

It gives you control over your business.

Boost your services.

Add value to your customers and prospects.

It positions you and brings you closer to your ideal client.

It is essential to feel valued and motivated at all times.

We've already told you. You don't get paid for what you do, but for what you know. #ElephantWord

Posted by Elefante en la red on Thursday, June 13, 2019

As you know, work is not just what you see at the end of the transaction.

There is much more and there must be.

It is not the same to buy a product in an e-commerce and have it arrive ok, than to buy that same product and have it arrive a day earlier than expected, well packaged, protected with bubble wrap, with a thank you card and even a discount voucher for the next purchase.