Even with all the effort you put into your company’s marketing, two main things that will determine the success of your business are the quality of your product and its price. The first of these two is something that only a manufacturer can affect. However, the latter aspect is available to retailers as well. With this in mind, here are four ways to keep your prices competitive and still generate enough profit to push your company forward.
1. The availability of the product
The first issue you need to study when determining the price of your product is its availability. You can start by gathering data on your customers. Next, you can start asking some relevant questions. For instance: How present is this product on the market? How easily can your clients and customers acquire it? How often do your competitors have the same product present? One of the ways to keep up with all this data is to find an online tool that can help you track your investments.
2. Investing in smart freighting
Another way for you to lower your prices is to look for better freight cost solutions. Many inexperienced entrepreneurs make a mistake believing that all that freighting implies is transporting goods from point A to point B. This, however, is far from the truth. First of all, assisted with present day freight management and fleet tracking technology, high-end freighting companies have a way of offering prices that are much more affordable. Saving money here can help you lower the price of the product so that it is much more competitive, yet still high enough to earn you a fortune.
3. Focusing on the quality
The value of the product is not an objective thing and although it is often determined by a good old law of supply and demand, there is a third way. Even though you might be offering the exact same product like your competitors, by creating a campaign that focuses on the quality of your stock, you can turn the odds in your favor. This way, you can persuade your customers that although they are paying slightly less than what your competitors are asking for, they are getting a much better deal. Still, this is a project that requires a lot of skill and is often something that even the most experienced marketers have trouble with.
4. Using psychological tricks
Finally, you need to keep in mind that sometimes your prices don’t have to be objectively lower in order to be competitive. In fact, there is a wide array of psychological tricks you can use in order to justify a bit higher product pricing. For instance, the centuries old $.99 trick is so overused, that your audience might respond positively to the idea of rounding up your price a bit. Another thing you could do is try to make your offer seem comparatively cheaper by placing it next to a more expensive offer. This way, you can encourage your buyers to see the product in a context that on its own works in your favor.
Conclusion
To sum up, keeping your prices competitive requires a lot of research, creativity and flexibility. Keep in mind that the market is a living thing and when it comes to pricing, your work is never done. On the one hand, you need to find a way to lower the cost of your product in order to stay competitive but on the other hand, you also need to learn how to recognize a situation in which you can get the most out of your investment. Learning how to adapt can make all the difference between success and defeat.
One thought on “4 Tips to Keep Your Prices Competitive”