Key Strategies in Pricing

Dec 27, 2013 | Posted by in Business, Business Plan, Business Tips, Management, Marketing | Comments Off on Key Strategies in Pricing

business strategyThere are various ways in determining the price. Each method is used in different situations. Because the price is the decisive factor in determining the success of your business.

Determination of the optimal price depends not only on production costs you incur in producing goods and services. Factors such as competitors, suppliers, and the availability of substitute goods contribute to determine the price. Here we will convey various pricing strategies used in different situations:

Cost plus mark up

With this strategy, you specify the desired profit before put price. This method helps you focus on profit, but can also cause prices beyond the expectations of consumers and the price of a rival company.

competitive price

In setting competitive prices in the market, you have to look at the price offered by competitors and use it as a benchmark for setting the price of your product. Your strategy will determine whether your price equivalent, slightly below, or slightly above the competitors.

Price skimming

You can use this method if you have a product that is unique and does not have a substitute goods. Prices are set high, thus providing a high margin for the seller. The buyers are those who are willing to pay for the uniqueness of the product. In terms of basic needs products, consumers do not have any other choice. Often, price skimming is a short-term strategy while competitors are also marketing the same products, prices are lowered.

Penetration pricing

This method is the opposite of price skimming. Determined price below cost in order to get a large market share. Because penetration price does not cover the cost, this is also a temporary strategy. Because this strategy profitable, consumers should be willing to pay the normal price, the price is higher.

Know the Three Types of Communication Important in Marketing

Dec 12, 2013 | Posted by in Business, Business Plan, Business Tips, Marketing | Comments Off on Know the Three Types of Communication Important in Marketing

inovationsHumans have three types of communication to the brain, and this type of communication is very important in marketing because when prospects are looking at offers and promotions hear about your product or service. Why is it important?

1. For the type of vision

Usually people that type of vision, speaking very quickly, while dressed also like to wear accessories that more than any other type of (arguably quite a lot). Or other characteristic that is, when the person speaking words like mention that access to vision. For example, “Apparently, it seems, shape, landscape, color and so on”.

If you get a prospect like this, you can submit pictures of your products and services.

2. For the type of feeling

At this feeling type traits are often shown with great tone, full of pauses and all that can access to the feeling. For example, “The atmosphere is comfortable, the air is cool, expensive yes, sweet yes,” it is the words that are often mentioned by the type of feeling.

And usually the type of feeling, when using the clothes rather not neat (but not all like this). The most important thing is comfort in that person. If you get a prospect like this, you can create uncomfortable feelings and talk about access to feel.

3. For the type of hearing

In this type of hearing his usual tone of his voice as he spoke up and down. Or tone that access to the hearing person. Words often spoken is “Who story, talking, he spoke of how, tone, song.” Unique habit that is often done on the type of hearing is very often this guy thrusting his ear to the other.

If you get a prospect like this, you can speak directly with him and spoke to a hearing regarding access.