So how do you decide which

The a comprehensive guide to this process see the following tutorial How to Write a Competitive Analysis for Your Small Business With Template Celine CX Roque Jul When youve gathered the competitive data its simply a matter of deciding which approach you want to take. Entice your customers with lower prices or position your products as being reassuringly expensive Advertisement . Choosing the Right Pricing Strategy for Your Business  pricing strategy is right for you Start by thinking about the industry youre in and the value you offer to your customers.

Although there are no hard

And fast rules here are a few guidelines Sweden Telegram Number Data on which strategies may be best suited to which types of businesses. CostBased Pricing Costbased pricing can be effective for traditional wellestablished businesses that have a clear picture of what their costs are and want to ensure that they make a clear profit. Often the process of calculating a production cost per item can be easier for companies that make physical products. The main downside of this method is that it doesnt take account of demand so you may end up with uncompetitive prices. Thats particularly true of startups which may have high costs to account for.

Or at the other end of the scale you

May charge too little and miss out on Korea Email List opportunities to make a higher profit margin. CustomerBased Pricing If your company enjoys a clear competitive advantage customerbased pricing may be better for you. It allows you to charge more knowing that you provide so much value to customers that theyll be happy to pay. The danger of customerbased pricing is that you may alienate customers who compare your prices to what they think the product or service must actually cost to produce and conclude that theyre too high. You also lay yourself open to being undercut by a new competitor who offers a similar.