Pricing strategy is another marketing technique one can use to improve the overall competitiveness. Get a feel for the pricing strategy which competitors are using.
That way one can determine if the prices are in line with competitors in the market area and if they are in line with industry averages.
Some of the pricing strategies are:
Retail cost and pricing
Competitive position
Pricing below competition
Pricing above competition
Price lining
Multiple pricing
Service costs and pricing (for service businesses only)
Service components
Material costs
Labor costs
Overhead costs
The key to success is to have a well-planned strategy, to establish your policies and to constantly monitor prices and operating costs to ensure profits.
Even in a franchise where the franchiser provides operational procedures and materials, it is a good policy to keep abreast of the changes in the marketplace because these changes can affect your competitiveness and profit margins.
That way one can determine if the prices are in line with competitors in the market area and if they are in line with industry averages.
Some of the pricing strategies are:
Retail cost and pricing
Competitive position
Pricing below competition
Pricing above competition
Price lining
Multiple pricing
Service costs and pricing (for service businesses only)
Service components
Material costs
Labor costs
Overhead costs
The key to success is to have a well-planned strategy, to establish your policies and to constantly monitor prices and operating costs to ensure profits.
Even in a franchise where the franchiser provides operational procedures and materials, it is a good policy to keep abreast of the changes in the marketplace because these changes can affect your competitiveness and profit margins.