Value Strategy
Now that we have evaluated the overall business strategy, let's move to pricing. Where will you be on the price ladder? Most expensive, middle of the pack or low cost leader. Depending on your products, the decision might be made for you. Any strategy can work as long as you know where you stand and you have a plan.
COMPETITIVE PRICING - How do you compare to the competition? It's vital that you know where you stand.
VALUE STORY – What builds the value in your product to justify the price? Value is created when the anticipated price is more than the actual price. Even if you have the lowest cost product, you can still create more value to make your product more attractive to consumers. What does you competition do to create value. That becomes the standard. You start there.
For example, local value priced local jewelry stores find themselves competing with the number one diamond jewelry in the United States. Pretty hopeless, huh? Not if there is value attached to buying from the local jeweler. Special wrapped, showing that you care. Who wants to tell people that their special piece of jewelry came from Wal-Mart? What if every purchase came with a single red rose or a gift certificate from a local romantic restaurant? Just do a little recipricol arrangement with the restaurant and viola, added value without cutting into margins!
Consumers are more value conscious now than ever. You don't have to been the cheapest, just the best value!
No comments:
Post a Comment