Apr 19, 2022
In General Discussions
There is a saying in the retail industry that price is the lifeblood of a product. Price determines the entire product strategy. If there is no reasonable pricing, a benign profit closed loop cannot be formed. Without a closed profit loop, there is no brand building and business model. Now let’s look back and see how your product pricing is formulated? Is there Romania Phone Number List anything unreasonable? What can be adjusted? What is the point of pricing? Is it just the line that draws the profit ratio? Things are far from simple, and when you are ready to start a project, the product price should already be determined. Because price determines the entire product strategy. First of all, the price determines the payment cost of the buyer. The customer groups with a unit price of 20 and a customer price of 200 are completely different. Pricing is the division of customer groups, that is, market segmentation. Second, pricing also determines where your product competes and which competitors you want to face head-to-head Romania Phone Number List with. Third, different pricing determines the allocation of different product resources. High-priced products and low-priced products require completely different performance, materials, teams, services, and marketing resources. Finally, different prices mean different incomes and profits, which also determine different ways of benefit distribution for suppliers, investors, and agents. So in the end, pricing is about strategy and life and death. Buffett once said: The only determining factor in evaluating a business is its pricing power. If there is no Romania Phone Number List reasonable pricing, a benign profit closed loop cannot be formed. Without a closed profit loop, there can be no brand building and business model. So how exactly should it be priced? In addition to cost analysis, competitive product analysis and customer group spending power analysis, we also need to master some necessary consumer psychology before pricing.