Understanding pricing objectives for your small business marketing consultancy Brisbane
The goal when considering pricing objectives is to make a profit from your products or services that are, in turn, going to be sustainable for your small business. Therefore, pricing objectives are implemented to ensure that profits are consistently contributing to your small business’s growth. Your small business marketing consultancy in Brisbane values each pricing objective as much as the other and believes each objective must be thoroughly planned and executed to meet the needs of your small business. The pricing objectives of your small business marketing consultancy in Brisbane consist of penetrating, skimming, and following.
Price penetrating refers to shocking the market by reducing prices below your competitors to attract new customers for business, the aim of this is to increase increasing market share or sales volume. This method does not show profits within the short term due to the dip in revenue from a decreased price but the long-term profitability of having a higher market share is an essential benefit towards your small business.
Price skimming involves setting a high price before other competitors come into the market. Commonly used when businesses have future-proofed their product and wish to capitalise on their market with increased profit. Although this method has short-term benefits its longevity is short-lived due to competitors that arise and penetrate your market.
Your small business marketing consultancy Brisbane understands both penetrating and skimming and will ensure your business will maintain its price objectives through whichever strategy necessary. Call Call 02 9700 186 to take action.