Pricing strategy for your business


Courtesy: NSBC e-Mag

 

Here are a few easy to apply guidelines for your small or medium enterprise:

Keep an eye on competitor movements when it comes to pricing and competitive advantages.

Try and always keep your pricing market-related or trending. In a price-sensitive situation try and beat, or at least compete favourably, with your main competitors, using either a lower yet viable structure or through product and service differentiation.

Distinguishing your product or service is preferred when justifying your pricing structure, especially if it is higher than competitors. However, if a lower profit margin is indeed comfortably sustainable, and within the ambits of the law, then it may be a calculated move to lower prices or at least hold back on large or sudden price increases.

Keep your overheads low by streamlining your expenses and steering clear of over-gearing.
This means in tough times you will have a greater competitive edge and easily be able to sustain yourself when consumer trends and market forces dictate that pricing simply must be revisited.

Use innovative marketing strategies and credible promotions to entice larger orders and still grow in terms of sales and profits based on greater volumes.

These are just five guidelines that if used appropriately can prove extremely useful so that your small business can also establish or redefine the ideal pricing structure as some of the banks and larger organisations have managed to do. As a small business many of these steps are also far more sustainable than large businesses that have a host of fixed and other costs. In the end what matters is remaining flexible and completely aware of changes in consumer behaviour, lending and various market and industry forces that will influence whether you price up or down.

Brought to you by: Genesis Articles

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