A price has to be chosen by each and every company for their products. To determine the price of a product means that one should be adopting different ways. A predetermined strategy should be followed. In this case a number of pricing strategies including pricing based on the value of customer, pricing of cost based and pricing based on competition have been identified. Any sort of price that is being chosen by an individual always falls between something which is very high that it is difficult for one in generating a demand or it may even be too low that one’s expenses might not be covered.
The perception of customers about the value of a product helps in setting price ceiling and the costs of product helps in setting the price floor. If the costs are higher as compared to the price of a product then loss may be faced by a particular company.
In order to check for the prices of different products a number of price comparison sites for online shopping are also being used by different customers. These sites also help a customer to find out and to compare prices of different products and services so they can choose a particular product with best price available.
There are a number of pricing strategies a few of them which are important and may help in making a number of decisions have been discussed below.
Customer value-based pricing
That pricing which is good may always be starting with the perception of different customers which may also include their certain values. It’s the decision of a customer that a certain product may be good or not.
This sort of pricing that is the value based pricing of a customer has always been using the perception of a particular buyer who is interested in buying of a particular product or service according to his needs and demands. A product’s price cannot be set after the product has been designed.
In this type of pricing the consideration which is primary is the cost of seller’s. This sort of pricing involves such a setting of prices which is based upon production cost, selling and it also involves distribution of product. If some profit is to be made then in this case certain amount of return to one’s account is added for risks and efforts.
This competitive pricing strategy involves one’s to set price on certain strategies of their competitors including costs, different offerings of the market and a number of prices. In such markets which are competitive a number of consumer base a product’s value judgments those prices which are being charged by one’s competitor for the same product.
One should always check that how their competitors are pricing different products and services which are being offered by them. What sort of techniques or methods are being followed by them that a number of customers are being driven towards them. This is an essential thing that should be kept into mind before one plans to make a certain product available for its customers.
Retailers should also make an effort that they should be pricing different products in such a way that it becomes easy for different customers to purchase a number of products or services for themselves without facing any sort of trouble or difficulty. It may also counts a lot and should be taken into account. Customers do count a lot for a business. So, in order to earn profits and to stay in business these techniques of pricing should be followed.