Pricing Strategies

The development of the pricing policy of the enterprise is a mattercomplex and important. If a company is a beginner, the products it offers only appear on the market, you need to first think about what niche it would like to occupy, and what percentage of the potential audience to seize, and then, respectively, choose a pricing strategy. Having reached a certain level, the company expands, plans to increase the share of presence, or completely changes the range and target group, and therefore slightly changes the policy of the value of its products.

In the profile literature is presented excellentClassification of types of pricing and strategies used in this case. And almost every section devoted to this ends with the idea that the management of the enterprise requires a complex action. This means that in their personal pricing strategy, elements from several options must be present in different proportions. After all, leadership in the market can be achieved only with a flexible approach to prices and their customers. And this axiom is applicable to any industry. The main thing is not to hurt and find the very ways to win a client. It is very important not to stay without profit.

How do marketers offer to calculate the price of a product? And what are the main pricing strategies?

The most difficult stage for production is the initial,when it only conquers the market. In this case, the price will become the determining factor for many buyers. And we will talk about this particular period.

The company can immediately install on its goodsthe minimum permissible cost, and the profit from its sale will also be minimal. Such a strategy of "breakthrough" is only suitable if the firm is ready to offer the market a large volume of its products and satisfy the demand in a short time.

Low price of goods entrepreneurs putsometimes not only to penetrate the market, but also to eliminate competition or to achieve the highest possible sales volume before the appearance of a similar product offered by a competitor. The benefit here, of course, is not in the profit received from each sold unit, but in the sales volumes themselves. The effectiveness of this pricing strategy for small and medium-sized companies will be maximized if they are able to concentrate production on a small market segment. Here, as they say, came - saw - captured, and then left.

You can sell the goods by obviously overstatedvalue, using a strategy called "skimming." In this case, the product is aimed exclusively at the audience ready to buy new products, and the price tells them about a certain advantage, uniqueness in front of the others. This policy is suitable for such industries as, for example, pharmaceuticals, where large expenditures are made for the production (research, development) of new products. But this pricing strategy has a drawback - it can not be used for a long time. So, travel companies for a new product first hold fairly high prices, and when demand begins to fall dramatically, they have to reduce them to win customers with lower purchasing power.

Management of some enterprises in the same fieldservices, for example (restaurants, nightclubs), use the strategy of so-called prestigious prices, equivalent to the desire to position their services (goods) in the VIP category. In this case, a high price, associated with exclusivity, a certain prestige and status, is a signal for wealthy customers, on which the firm counts. When using a different pricing strategy, the target group would most likely just ignore this product (service).

The above strategies are not only convenient forthe stage of entering the market. However, to further promote the goods, they must be supplemented with other elements, for example, a system of discounts, discriminatory or psychological pricing.