What are the main pricing strategies in 2020
In this article, we will discuss the primary pricing strategies that will continue to rule the market in the year of 2020 as well as at least until the first half of the decade. Know what all these different strategies are and how they differ from each other.
The sale price of a product or service can mean the success or failure of a company, so companies must study in detail the types of strategies they must apply to attract and retain customers.
Undoubtedly one of the marketing activities that seem more complex is the establishment of the right price of the product; however, this can become a simple activity, considering the behaviour that the market shows.
Below is a list of different pricing strategies fromCompeteraThe high price strategy
This strategy is mainly based on setting high prices for new products, once the demand is met, the price can be reduced and other segments that are more price-sensitive can be used. The objective of this strategy is to have high margins to cover research and development.The low price strategy
The low price strategy, that is, a price below the competition average, is a method that must be handled with great care since it involves significant risks.
The decision to establish a low market price for a product is used in any of the following cases:
Used when a dealer wants to control the growth of competition.The average price strategy
This tactic is recommended when the market to which we intend to address is very pulverized, that is, it has a large number of competitors and a group of demanding consumers. Through this strategy, we will have important advantages, and the most outstanding is that we can increase or decrease the price according to the behavior of the market.
This is a viable way to maintain the conditions of healthy market competition.How to choose the price strategy?
The choice of a particular type of pricing strategy does not necessarily require its permanence over time. As it is possible to alternate the different possibilities in response to frequent fluctuations in the market in which the firm works.
The price is a parameter that allows the company to act quickly in its decision-making, as well as being a quality indicator that has been taken into account by the public.
The pricing strategies must also work together, in the sense that the pricing of the different products offered by a company must be designed with a certain level of consistency since in many cases these are complementary products and their consumption is usually linked. An example is that of a company that offers shaving products and sets the price of the blades well in proportion to its shaving foam.Importance of having a pricing strategy
The price is an elementary variable in the short term, unlike other important elements for marketing such as product and distribution. This fact of being more flexible facilitates the fact that the company can modify it in a timely manner to improve its benefits, its profitability and initiate or respond to any price war.
This element contributes greatly to positioning and is often the only variable at the time of conceiving an idea about the quality.What elements condition the setting of a price strategy?
Before setting a price, the company must take into account some factors that determine the sale price, the objectives that are sought to be achieved with that price policy and the pricing strategy to be followed.Conclusion
Your pricing strategy should be based on the state of the business. A start-up will have a different pricing strategy whereas an established business will have a different pricing strategy. However, choosing the right one will make all the difference in how much profits you will make from your business.
