That’s the question we all ask when offering a product or service. This time, we will not tell what should be their prices from calculations such as addition, subtraction or percentages. We will now focus exclusively on pricing strategies made by the world’s leading companies.
Staying in the Game
Why do the products have the price that have in the market? Very simple. Because that’s the value that consumers give to that specific product. Do not try to swipe this premise. If you do, your customers will not hesitate to prefer competence. If the market dictates our product should cost a certain amount, we should stick to that price. Marlboro took a lesson from it. It had higher price than its competitors. However, it installed the “Marlboro Friday” exclusive day for cigarette sales at a lower price. The results of this campaign were so good, that Marlboro decided to lower their prices and again took much of the market.
More on the Perceived Value
Once you enter in to the game of the market, may offer better quality products. No doubt that there will be many willing to buy your product to customers’ even higher price, because they know that what you offer is quality. That’s what happens with different prices in cinema, theater and musical performances. The show is the same, what varies is the service and customer preference.
More Price for Best Quality
We can offer a product similar to our competition, but perhaps ours provide longer life, greater strength and better comfort for those who use it. In that case, it would be unreasonable to set a price equal to that of our competition. It will have to be major. That’s what happens in the battery market, where brands known for their long life there, and therefore hold greater than their competitors price.
A High Price, High Prestige
When you purchase a product with high price, the consumer not only seeks to satisfy a need but also hopes to achieve acceptance and visibility to friends and acquaintances. Therefore, it is not surprising that there are vehicles with high price. The manufacturer of these vehicles is required that their logo is visible to all, and so gives prestige to their customer. In summary, a high price is an intrinsic factor that seeks to benefit the customer; it becomes more of a quality product.