Pricing strategies – part of marketing?

Price ‘lead in’ promotion is becoming very evident in the current climate.  This is very different from pure discounting - ‘just to pull the business in!!’ 

In tough times, there is a tendency for some organisations to be more susceptible to providing discount.  Often, this is carried out without a true understanding or appraisal of all the opportunities afforded by good pricing strategy from a market point of view. 

Some customers are focused on price but not all - what most consumers and businesses are looking for is value.  There is a great article in this months Marketer magazine that expands on these points.  There are some superb examples of pricing tactics that have maintained price margins by good marketing planning and some training of personnel in how to move away from discount in price negotiations.

In general terms, heavy discounting leads to quality being stripped out of products and services.  In general terms, that 10% off equates to a huge hit on the margin!!

For more information, contact russ@rfm.co.uk