The to the client is or just . All that matters is what its worth to the client. If theyre happy to pay and they get clear value from the purchase then the price is justified. . CompetitorBased Pricing So far weve looked at setting your prices based on your costs and based on your customers. But of course your company doesnt operate in a vacuum. You have competitors and those competitors have their own pricing strategies that you need to consider. So some businesses decide to set their prices based on the competitive landscape. In the UK for example retailer John Lewis used the slogan Never Knowingly Undersold successfully for almost a century.
It reassured buyers that the prices they found in
John Lewis would be the best available and that if they found an item cheaper elsewhere they could get a refund Spain Business Email List of the difference. Walmart takes a similar approach in the U.S. But its important to note that while competitor based pricing often means undercutting the competition its not always the case. For example have you been to an Apple Store lately If so youll notice that the company follows a premium pricing strategy. Whether its an iPhone a laptop or simply a pair of headphones the price is often higher than that of competitors. The price may deter some buyers but Apple knows.
That it will attract others who see
Apples products as higher quality. Other companies do the same thing. Think of Mercedes or BMW carsor at the even more premium end Ferraris or Lamborghinis. Think of Gucci ties and Tiffany Cyprus Phone Number jewelry. Premium pricing strategies are surprisingly widespread. A beer brand Stella Artois had a longrunning advertising slogan in the UK that sums up premium pricing perfectly Reassuringly Expensive. So if you want to implement this strategy do some competitive research and find out what your competitors are charging for similar products or services For.
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