Pricing Strategies Translate to Success or Failure for Small Businesses
- Topics:
- Competitive Strategy
- Source:
- e-magnify
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Overview: Profits are tied directly to the pricing strategy of a small business, and the pricing strategy of a small business ultimately determines its fate. Choosing the wrong pricing strategy can be a costly mistake, because setting a pricing strategy is difficult. Pricing must be systematic and strategic, and not implemented after the product has been developed. “Pricing needs to be an integral part of the plan for taking a product to market from the very beginning. From a consumer perspective, fair pricing means that a discounter's prices must be low enough to make it worthwhile for the consumer to give up some customer services and brand choices; at upscale shops, the level of services and brand choices must be worth premium prices. Businesses need to look at the pricing environment in which they operate, determine how much pricing discretion they have, and determine the value their product or service has for customers.
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Format: HTML | Date: Aug 2003 | Pages: 1
