53. What does your price tell your customer?
"Price is a vitally important element in your market strategy. You can usually change it quickly, unlike your product or its packaging."
With effective, intelligent pricing, you can out-maneuver, out-market, and out-sell your competitor and get a bigger share of the market.
1. More products fail because of a price that is too low, than because of a price that is too high.
2. It is easier to cut prices than raise them.
3. "Prestige" pricing can often build your perceived value.
4. One particularly effective strategy is to start out with a relatively high "prestige" price, then cut the price later. The result is a high perceived level of quality, plus a "value" look.
5. A low (or "defensive") price can discourage new competitors.
6. Price testing with a sample group of customers is an excellent way to get important information. Check for positive or negative reactions at various price levels.
7. Price in such a way that you build up your bottom line.
8. Do not get involved in price conspiracy or price fixing agreements.
9. Your pricing strategy should attract customers and confuse competitors.
Price is a vitally important element in your market strategy. You can usually change it quickly, unlike your product or its packaging.