Pricing strategy
Strategy and planning
Strategy and planning
Your pricing strategy is how you set prices: based on cost, on the market, or on the value the customer perceives.
Value-based pricing usually returns most, but it demands proof: cases, numbers and a proposition that makes the payoff clear.
Price is communication too. Being structurally cheapest attracts customers who leave at the next better offer.
Tip
Test a few percent price increase before freeing up more budget: it often moves your profit more than a campaign, in a good way.
Related terms
- MarginMargin is what's left of a sale after direct costs. It's the number that decides how much you may spend on marketing.
- Marketing mixThe marketing mix is the classic set of choices around your offer: product, price, place and promotion — for services extended with people, process and physical evidence.
- Value propositionA value proposition is the promise in one or two sentences: who you're for, which problem you solve and why you're credible at it.