Spot Ways to Grow Profits

Pricing

Product and Price – Collected Links

Product and Price – Collected Links

You can build a better mousetrap, but a mousetrap is not a business! You’ll offer a variety of pest removal devices – how will you present all the options to customers? Which will you build next? How will you set prices so your business can cover its costs and survive? Product tactics should include three […]

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Raise Price The Best Way

Raise Price The Best Way

“It costs a little more, but it’s worth it.” How can you get your customers to say that when you decide to raise price? What’s the best way to raise price? The quickest way to raise profits is to raise price, if you do it right. So this is worth thinking about. The goal is […]

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Ten Pricing Techniques

Ten Pricing Techniques

This article sums up ten articles on pricing techniques. To see all the articles, go to Pricing. Pricing Basics: Value Positioning and Margin – these are the two basics in pricing. Customers buy value, so you must know what your customers value, and how well you deliver that value compared to competitors. Be better, and […]

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Reasonable Markup to Distributors

Reasonable Markup to Distributors

In setting their markup to distributors, producers must understand both distributor and retailer functions and costs. Distributors are the middle component of a three-tier distribution chain: producer to distributor to retailer. The distributor is the “middleman”. The distributor and the retailer incur their own costs in bringing the product to customers, and both need to recover […]

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Promotion Pricing

Promotion Pricing

Promotions are temporary. Promotion pricing is designed to provide a temporary boost in sales by offering more attractive terms than the standard list price and options. Unlike differentiated prices (see Differentiated Pricing), promotional prices are available to all buyers, with the possible exception of a credit check for a promotion involving better credit terms. But […]

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Differentiated Pricing

Differentiated Pricing

Differentiated Pricing means different prices for the same product in different situations. Familiar examples are senior discounts, high prices at airports and resorts, and lower prices for last-minute tickets. The goal of differentiated pricing is to earn higher margins in one of two ways: higher prices in a location with less competition. Examples: airport, resort, pro […]

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