Market-based pricing strategies
Posted: Wed Feb 12, 2025 7:10 am
Set your prices based on the added value your company provides.
I'll tell you how to follow each of these paths and in which cases each of them is recommended:
1.-
This involves setting your prices based on supply and demand.
It is a strategy that focuses solely on the market and not on the value proposition or your tastes or preferences for products or services.
It is widely used, especially in the retail sector, where commercial pakistan phone number list margins are at stake.
It is usually applied to products that can be easily replaced, although it has also been seen with services, such as the famous case of Media Markt and its community manager services .
If you offer digital services, I do not recommend this type of strategy.
If you have a worthwhile business (and I count on it), you can offer a lot to your clients and you have to transmit it to them.
If you don't care about your value proposition and how to differentiate yourself, you can be replaced at any time.
This strategy is not the way to make your business more profitable either. Don't think that because there is a lot of demand for something specific, you have to sell it yourself.
In these cases, prices are almost determined by supply and demand, and raising them would break the market.
Also, I remind you that pricing strategy is not just about profitability.
I'll tell you how to follow each of these paths and in which cases each of them is recommended:
1.-
This involves setting your prices based on supply and demand.
It is a strategy that focuses solely on the market and not on the value proposition or your tastes or preferences for products or services.
It is widely used, especially in the retail sector, where commercial pakistan phone number list margins are at stake.
It is usually applied to products that can be easily replaced, although it has also been seen with services, such as the famous case of Media Markt and its community manager services .
If you offer digital services, I do not recommend this type of strategy.
If you have a worthwhile business (and I count on it), you can offer a lot to your clients and you have to transmit it to them.
If you don't care about your value proposition and how to differentiate yourself, you can be replaced at any time.
This strategy is not the way to make your business more profitable either. Don't think that because there is a lot of demand for something specific, you have to sell it yourself.
In these cases, prices are almost determined by supply and demand, and raising them would break the market.
Also, I remind you that pricing strategy is not just about profitability.