A price that builds profit

Company pricing policy – strategy types

An effective pricing policy must be well thought out and focused on specific goals. Depending on the specific nature of the product being sold, you can choose from three pricing strategies:

• A strategy based on product manufacturing costs – it doesn’t take into account the demand for the product; it assumes small margins; it’s most often used for cheap products, e.g. food.
• A strategy based on competitors’ actions – it requires in-depth market analysis; it usually results in neutral prices which consumers are accustomed to; however, this strategy may lead to a price war between competing companies.
• A strategy based on knowledge of consumer behaviour – it’s based on observation of the purchasing behaviour of the target group; in order to apply it, it’s necessary to conduct research and analysis of the target group to understand its capabilities and needs.

Enterprise pricing policy – its importance

A pricing policy makes all the difference in marketing. First of all, it determines a given brand’s position on the market.It’s an indicator of whether a product is elite and premium or widely available and affordable. The pricing policy also includes a more narrowly understood strategy – it sets out a promotion plan and its objectives, as well as how the cost of the product will be communicated to the customer. This can be done, for example, via shop newsletters (in the case of supermarkets) or by sending a request for quotation (in the case of tailor-made suits). All of these factors influence whether a consumer will choose a given product.

Price optimisation – what is it?

Price optimisation is a popular method of determining a pricing strategy in e-commerce. It involves the use of special software that automatically compares the prices of individual products in different online shops and determines the appropriate value. This saves an entrepreneur a lot of money and time. However, this solution doesn’t take into account consumer behaviour and preferences – it’s limited to market analysis only.

Sales consulting – benefits

Using the services of a sales consultant allows you to analyse your current strategy and make the necessary changes. In many manufacturing companies, entrepreneurs set prices based on established rules, without a specific action plan or goal. This results in ill-considered promotional campaigns, too frequent sales or too high margins. A good strategy doesn’t come out of nowhere – it’s the result of analysing vast amounts of data, conducting research and testing. To do this well, you need the right knowledge and experience. These resources can be provided by an external specialist hired by your company as a consultant.

Pricing consultant on the Redegate website

A sales adviser who sets and implements a pricing policy is an increasingly common position, especially in large companies. Small and medium-sized enterprises usually don’t need to hire such a person on a permanent basis, but they can also benefit from this type of service. A pricing policy consultant on the Redegate website is an excellent solution. On our platform, we match experienced and certified specialists with companies that want to use their services. Simply fill in a form specifying your expectations – we’ll provide you with suitable experts who will help you grow your business.