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Pricing Strategies - Jeremy Gray

6/12/2020

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Jeremy Gray - "Practical Solutions to Difficult Problems"

A pricing strategy is a model or method used to establish the best price for a product or service. It helps you choose prices to maximize profits and shareholder value while considering consumer and market demand.


If only it was that simple. There are many pricing strategies that you can follow and it is likely you will use a mix of several strategies. We will look at some of the most common pricing strategies and talk about the pros and cons of each.

It's important to keep in mind: People buy from you for only three reasons. You can save them money, you can save them time, or you make them feel good. I have seen extensive lists of the reasons people buy but they are just subsets of these three fundamental reasons to buy.

Strategies we will cover are:
  • Competition Based pricing
  • Cost Plus Pricing
  • Freemium Pricing
  • Hourly Pricing
  • Skimming Pricing
  • Penetration Pricing
  • Premium Pricing

We will also briefly discuss
  • Project based Pricing
  • High Low Pricing
  • Bundle Pricing
  • Captive Pricing

I will look at detail into Value Based Pricing and why it is important
  • How to calculate value based prices
  • Popular misconceptions about Value Based Pricing

Pricing programs often fail to meet their objectives and some ideas on how to increase your chances of success.
  • Identify low margin or unprofitable products or services.
  • Understanding your place in the customer’s cost structure.
  • Align incentive programs with pricing strategies.

At IBGR we are dedicated to helping you grow your business. If you have any questions on this topic please do not hesitate to contact me at jeremy@business-in-asia.org

If you are a dentist and would like to learn about proven strategies that can improve your revenue and earnings, please visit my website dedicated to you
 https://thedentistscfo.com/

​

F3.10.3AA

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