Strategies of prices

The price is the monetary value that we assigned ourselves to him to a product at the time of selling it, and strategies of prices are simply decisions that we took related at the cost of a product.

We see next which are the main strategies of prices that we can apply in the following situations: when we are going to introduce a new product to the market, when we have already fixed a price initial, and when we are going to offer a discount:

Strategies of prices for new products

When sending a new product to the market, we can use the following strategies:

• to fix a price to initiate relatively high so that, that way, to take advantage of the purchases done as product of the newness of the product, that is to say, to take advantage of it purchases done by consumers interested in the newness of the product, and who count on the economic capacity to acquire it; and, that way, to obtain majors utility margins. Once satisfied the demand of the objective public, it is possible to be diminishing the prices, and to look for to penetrate in new markets.

• to fix very high a price initial so that, that way, to create a sensation of quality in the product, that is to say, to put a price very over the price average of market, with the purpose of to give to the product a quality sensation, estatus or prestige; and, that way, to obtain that the consumers feel attracted for that reason. We must use this strategy as long as the consumers who conform our objective market, have the economic capacity to acquire the product, and that our product really is of good quality.
• to fix an initial price under so that, that way, to obtain a fast penetration of market, a fast welcome, or to make it quickly well-known. Once we have a good demand, it is possible to be increasing the prices. We must use this strategy as long as he counts himself on a great objective market, and that our costs can fall as it increases the volume of sales.

Strategies once fixed a price

Once we have already defined him the price to a product, we can use the following strategies:

• to reduce the prices so that, that way, to attract a greater customer. This strategy usually is used when the sales are handicapped or lost participation in the market is had. Although before use this strategy in these situations, the recommendable thing is to look for to increase to the promotion or the distribution of the product.
• to reduce prices below those of the competition for, that way, blocking it and gaining participation to them of market.
• to increase the prices over those of the competition for, that way, giving to an image of quality or exclusive feature in front of the other competitors.

Strategies of discounts

When one is to promote a product through use of discounts, we can use the following strategies:

• discount by soon payment: it consists of offering a discount if the client pays to us before the stipulated thing, for example, if we sell a product with a credit to 30 days, we can choose to offer a discount of the debt (for example, of 2%) if the client pays to us before the stipulated thing (for example, to the 10 days). This strategy helps us to improve the liquidity, as well as to reduce the collection costs.
• discount by amount: it consists of offering a discount if they buy in amount our product to us; to greater amount, we can offer greater a discount. For example, we can make a discount by the purchase of a dozen of our products. This strategy helps us to stimulate the client so that it always buys to us and only; if we sell to companies, it helps us that they choose to us like his supplier and, if is possible, that we are the unique ones.
• discount by season: it consists of reducing the prices of the products that are outside season; it is used to throughout maintain the same rate of the business the year. For example, we can reduce the price of articles to dress that they are outside season, or the cost of lodging at times where is not much customer.
• discount by advantage: it consists of making discounts by some benefit that can offer the client us, for example, we can make discounts by the delivery of an old article or used, for example, by a used battery, the price automobile that we sell could have a discount of 2%.

In order to know how to fix the price of a product we invited to you to visit the article what price to put to a product.