Download Setting Profitable Prices, + Website: A Step-by-Step Guide by Marlene Jensen PDF

By Marlene Jensen

Time-tested thoughts for making the absolute best pricing judgements and gaining an unbeatable aggressive virtue Pricing is among the so much important-and difficult-marketing difficulties businesses face while launching new items. regrettably, the learn that is going into making optimum pricing judgements is a truly time-consuming process-unless, that's, you could manage to pay for to pay a specialist or open air enterprise to do it Read more...


Time-tested innovations for making the very best pricing judgements and gaining an unbeatable aggressive virtue Pricing is among the most crucial and hard advertising and marketing problems Read more...

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Additional info for Setting Profitable Prices, + Website: A Step-by-Step Guide to Pricing Strategy--Without Hiring a Consultant

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Com. 3. JWT Intelligence forecasts: a. indd 26 Technological Change Technological change, even in products other than your own, can affect your company’s pricing and sales. For example, I was publisher of Audio magazine for CBS when the music industry was switching from LPs to CDs. It was a great 17/12/12 9:17 AM E n v i r o n m e n t a l F a c t o r s T h a t C a n A f f e c t Yo u r P r i c i n g time for the magazine because most companies in the industry wanted to advertise their new (usually higher priced) products.

Since you really can’t know what demand will be, cost-plus pricing will not give you the “guaranteed” profits you expect. 2. Because you haven’t accounted for consumer percep- tions of value Suppose you guessed right about the quantity you would sell. So you got your planned 15 percent ($15) profit on each item. That’s great, right? Should you be celebrating? Not necessarily! You might just have cost yourself thousands and thousands of dollars. How? What if the people who wanted this product and bought it at $115, would have been just as willing to pay $130?

Maybe if you don’t lower prices, neither will your competitors. Then you’ll have a healthier profit margin in bad times. ● If your product is a necessity, you are less likely to need to discount. ● If you sell to consumers, you are more likely to need to discount—starting with the most expensive items such as cars and major appliances. ● ● If the bad economy drags on (as it did in 2010–2011), some consumers will discount shop even for the least expensive items. However, this doesn’t mean consumers won’t splurge.

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