8 Simple Steps to Optimize Your Pricing

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8 Simple Steps To Optimize Your Pricing

Are you confident your product or service pricing is helping you achieve your business goals?

Are you familiar with all the pricing approaches available to maximize your profit?

If you are a small business owner who answered ‘No’ to one or both of these questions we invite you to watch the video or read on.  As Marketing Consultants in Los Angeles we also invite you to contact us for any specific pricing inquiries.

Pricing is one of the most critical elements of the marketing mix. It’s an evolving balancing act to ensure that you stay competitive while maximizing profit.

Price too high and you won’t generate the volume you need…price too low and you will leave money on the table.

Every business is different but establishing the optimum price for a product or service is critical to long term competitiveness and survival. After successfully pricing countless products and services we’ve found the following approach to be the most effective.

8 Simple Steps To Optimize Your Pricing

  1. Define business goals and positioning – maybe your goal is achieve a dominant market share or maybe it’s to be the cheapest option on the market?
  2. Calculate costs – your costs will set the price floor for your product
  3. Review the competition – your customers will be making comparisons
  4. Review pricing options – there are tons available so decide what’s right for you
  5. Test demand – you don’t have to rely on your gut, there are ways to research pricing options before you go to market
  6. Execute – select roll-out the best option
  7. Review – pricing is dynamic and will change over time

It’s a complicated topic but essential to get right if you want to grow your business.

 

 

About the Author Richard Dewhirst

Rich is a highly skilled marketer and passionate entrepreneur who loves to solve problems and grow things, whether it's brands for global companies like Mattel, Pizza Hut, and 20th Century Fox or high value customers for local startups. Rich hates exams but he somehow managed to get a BA in Business Studies, a Masters in Marketing and is Google certified for Analytics and Adwords. Did I mention he's a partner at Custom Marketing and pro-photographer?

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