The importance of a pricing strategy, by our small business marketing consultants in Sydney
Your pricing strategy provides important information about your business, as a certain price of a product can attract a particular demographic and can create a perception of your products value. Our small business marketing consultants in Sydney believe that your pricing strategy must cover your costs and attract the customers targeted in your marketing plan.
In order for your business to succeed, you have to charge enough to cover your costs and earn a modest profit. For a product of comparable value, customers tend to choose a lower priced item over a higher priced item. Our marketing consultants in Sydney value the importance of charging less, as lower prices often result in higher sales, however this is also dependant on the type of product you are selling.
On the other hand, for some consumers, a higher price can become a selling point for your business. This may be true for items that consumers see as a status symbol or for a product that deeply appeals to their values, such as environmentally friendly materials.
Most importantly, our Sydney marketing consultants recommended you evaluate your competitor’s prices. Analyse how much they are charging and what value additions they are including in order to position your own offerings relative to theirs.
For more information on an appropriate pricing strategy, please contact our small business marketing consultants in Sydney.