September 5, 2013 at 10:29 AM

Pricing Strategies That Work – Part 2

By James Glover

Once a Day Marketing

James Glover, That Branding Guy, provides the inspiration and ideas for you to build more mindshare and capture marketshare with your customers in his Once a Day Marketing blog. Tune in often to his short, entertaining and practical marketing and branding tips and watch your organization become more successful and profitable.

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Once a Day Marketing™ featured video blog: Pricing Strategies - Part 2

Hello, I’m Jim Glover, That Branding Guy for Once a Day Marketing™. Today we are continuing our series on pricing looking at four additional strategies.

Key factors that come into play when evaluating pricing strategies are the uniqueness of your product and what your competition is doing.

The first strategy we will discuss is called bundle. In this scenario various products are bundled together and sold at a lower price than the individual items. Supermarkets frequently practice this method, perhaps advertising bundles of house cleaning products or milk and bread to entice customer to buy additional items.

Next is psychological pricing. Here you determine a price that will be seen favorably in the eyes of your customers. Would a customer be more likely to buy a $1 order of French fries or an order for $0.99? The actual difference in price is negligible but psychologically the two price points are viewed very differently.

Then we have premium. A high price is established to create greater perceived value for the product. Some consumers will gravitate to a high price because they believe they are getting more for their money.

Last is optional pricing. This strategy may be employed by a car dealer for instance. They offer a base model and customers are given the option to add such items as stereos or leather seats to the product for a higher price.

There are numerous pricing strategies available. Determine which are most appropriate for your product and your market. You may want to try different pricing strategies for various target customer segments. Pricing is the only one of the 7Ps that doesn’t cost anything to implement.

Pricing drives your revenue and eventually your profits. It is essential to thoroughly evaluate the process of pricing and impacts to your customers. Once a Day Marketing™ positions brands to become #1 in the minds of target customers.Visit our website at www.onceadaymarketing.com. Contact James Glover at (505) 501-1330 or email glover@onceadaymarketing.com. Listen to Ask Those Branding Guys™ every Monday at noon (MDT) streaming live on SantaFe.com KVSF 101.5 FM.

© 2013 Once a Day Marketing™. All rights reserved.

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