“Best-guess” pricing is not a responsible way to manage your business.
These questions will help you determine your best pricing strategy:
- Are you monitoring your industry, market and competitors so that you are aware of the forces affecting customer demand for your products and services?
- Have you thought about whether the pricing strategy you are considering is compatible with your overall marketing mix (e.g., online, offline, social media etc.)?
- Do you know which of your products and services are best sellers and slow movers?
- Have you determined which of your products and services are elastic and inelastic?
- Have you studied your competitors’ comparable products and services for offerings and pricing and compared them to yours?
- Are you going to let yourself be influenced by changes in your competitors’ pricing and refund policies?
- Do you monitor your competitors’ marketing campaigns, launch strategies and advertising to keep pricing data updated?
- Do you order competitor products to examine the quality, depth and breadth of material you’re competing with?
- Is there a predictable pattern or time of year when your competitor has sales or runs specific promotions?