Post by Rupa on Dec 5, 2023 8:22:13 GMT
A pricing policy is nothing more than a strategy for setting prices for products and services. In other words, it is a set of actions through which business owners can determine the level of offered prices, how they are set, and the rules for granting discounts.
As you already know from the introduction, a Phone Number pricing policy contributes to the overall growth of the company. And this is possible because taking care of your price list achieves three important goals.
Maximizing profit
Pricing policies have a direct impact on a company’s profitability. Let’s take a look at the fast-food restaurant chain McDonald’s. Through its “value menu”, McDonald’s burgers became attractively priced and accessible to the masses around the world. This was certainly one of the strategic elements that helped this U.S. company achieve economies of scale and contribute to increased profits.
Increasing market share
Pricing can help companies reach new customer segments and increase overall market share. For example, GetResponse, a Polish email marketing company, makes its platform available in multiple pricing options to meet the needs of its customers. We see a similar practice in many other industries, such as the automotive industry. Mercedes, for example, offers sports and luxury cars in addition to standard and expensive passenger cars – see AMG and Maybach.
Building a brand image
Pricing is also used to position a brand in the market. Apple, for example, successfully uses this mechanism by selling both laptops and smartphones at a higher price than its competitors. As a result, the U.S.-based technology giant is perceived as a premium brand, which is effective in reaching more affluent customers. Does that translate into business results? It does. In the fourth quarter of 2022, Apple’s share of the global smartphone sales market was as high as 24.1%.
Types of pricing strategies
As you already know what goals you can achieve by appropriately selecting a pricing policy for your products or services, let’s now look at the types of pricing strategies. There are several of them. However, we will focus on three basic ones, namely a low pricing strategy, a neutral pricing strategy, and a high pricing strategy.
