Welcome to part 2 of our 7 part series on the foundations of marketing. Today’s foundational element is price. Getting your price right can be the difference between success and failure.
P2 – PRICE
Price is what people will pay for your product or service. Setting pricing strategy is both an Art and a Science. Pricing strategy will be determined by the willingness and ability of the customer to pay, what competitors charge, the quality of the product and the desired positioning in the minds of the consumer.
➢ Positioning – the price you charge often reflects the positioning of your product or service in the mind of the consumer.
➢ Competitors – What do your competitors charge? Where are they positioning their product? Is it good value for what the customer receives?
➢ Discounts – should you discount your product (hint: try to avoid it).
➢ Payment Period – how long does a customer have before they have to pay you? Do they have to pay some upfront and some on completion? This will vary widely from industry to industry.
➢ Credit Cards – will you accept all credit cards? Cheques? Cash? Electronic deposits? Consider also how easy you are to do business with.
➢ Refund Policy – will you offer refunds if so? For what time period?