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Pricing,
especially in the present market scenario, has become
very crucial to maintain a respectable bottomline (&
topline!). These challenging conditions need, a radical
different approach to price your products (& or
a service).
Following
are 5 basic guidelines, on how you can price your products
for the demanding customers.
Don't base your price only on based of costs. Take customers'
perceptions of value. Otherwise you may end up with a
price that is too high or low.
Dont quote market price. Identify areas where your
product is unique & adds better value to the customer.You
can quote higher.
You won't have same profit margin across different products
/services. Try to work out right product mix offering,
to achieve a total optimum profit margin.
All customers are not same. For same product, why you
can't have different prices depending on customers' perception
of value you provide?
Review (not neccessary change) the prices at least
once every 6 months. The costs, sales volume & value
perception by customers are dynamic, requiring price review
periodically.
Its
the Sales-Marketing & not the finance department that
should have a final say in pricing.
Cost
is a fact & pricing is a policy.
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