Impact on relationships with distributors and partners

[ishanijerin1]

Finally, improper pricing can affect relationships with distributors, resellers, and other business partners.

This is because very low prices can reduce their profit margin and very high prices can make it difficult to sell the products or services.

Worth keeping an eye on!

Competitive pricing strategies
In order to achieve truly competitive and profitable pricing , a businessperson must consider a variety of factors , such as production costs, competition, market vp hr email database demand, value perceived by the customer, among others.

It may not seem like it, but even seasonality interferes with this strategy, along with the number of employees and technologies used to produce and deliver the product or service.

Below, we list four of the main pricing strategies used by the market so that you can choose the one that best suits your company.

Penetration pricing
Pricing , when defined through this strategy, involves the practice of prices well below the market so that, in this way, the brand can penetrate the market and the minds of its potential and future customers .

Although it may seem like a risky strategy, after all, the product or service will be sold for a lower price, you will gain from the sales volume, which tends to be higher.

This is a strategy widely used, especially when new companies want to enter an already consolidated market.

Combined with other strategies, especially focused on marketing, the deodorant brand Above, from the company Baston Aerossol, worked, in 2018, with penetration pricing when launching itself in the hygiene and health/deodorants category.