The pricing of your company’s product or service will have a demonstrable impact on the value equation. Price influences the customer’s perception of what value they’re receiving. Pricing also affects what profit a business captures.
While entire books have been written on pricing strategies, we’re going to concentrate on pricing basics to help your small- and mid-sized business. In this chapter, we’ll demonstrate how to integrate pricing blueprints into your marketing strategy.
Here are three simple pricing truths:
• Pricing low may increase demand and the number of happy customers but can often result in lower profit.
• Pricing high can increase profit but lower demand and customer satisfaction.
• Both strategies ...
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