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Welcome back everyone. In the sixth and final part of my blog series, I want to discuss something that affects all of our financial journeys: Superannuation. Perhaps you’re concerned about your retirement savings? Or maybe uncertain about how to make the most .....
Business - 4 min read
You might have the best products and services in town, but if your pricing strategy is lacking, your business will suffer. Many different factors go into a winning business strategy: you need competitive products and services, a convenient location, effective marketing, and a dynamite leadership team.
Each of these factors requires your attention, and pricing deserves focus as well, especially if you want to maximise profits and market exposure. Let’s look at how to create a killer pricing strategy.
Before you can create an effective pricing strategy, you need to examine the big picture. What are your overall business goals? Your pricing strategy is an important contributor to your overall goals, so don’t jump ahead and tackle your pricing strategy first without accounting for your goals.
You may be focusing on any number of overall business goals such as the following:
These and other overall business goals require different pricing strategies, so clearly identify your goals before you decide to make any changes to your pricing.
With your overall business goals and your market pricing analysis in mind, you’re getting a nice in-depth look at the environment you’re operating in. Now you just need to focus on your target audience.
Use existing data to figure out the perceived and real value of your products or services to the customers in your target market. What do they gain from your products and services? Why will they use your products? How will they use them? Will they buy your products for gifts? Will they purchase them during emergencies? Will they buy your products with cash on hand, or will they finance them?
Armed with all of this information, you’re prepared to formulate an action plan. Based on your business goals, you may choose to create a pricing strategy that is artificially low (market penetration), promotional (one-time deals), sandwiching (high, medium, and low priced items to drive customers to medium priced items), competitive (equal to your competitors), or psychological ($0.99 instead of $1.00).
After you have finalised your pricing strategy, revisit it on a regular basis after it’s implemented. The market environment changes, your customers change, and your products and services may change, too. Flexibility will keep your business agile, as long as you’re working toward your overall business goals.
For help with your pricing strategy, or to discuss any other business concern, contact us at Altus Financial.
For more insight into the strengths and weaknesses of your business, complete the Healthy Business App by clicking below:
Set your business on the right path with this simple guide.
Make sure you’re on the right track with this online checklist.
Connect with the author of this post and they'll get back to you.
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Business - 9 min read
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Altus Wealth Pty Limited ABN 55 649 956 212 is an Authorised Representative of Altus Financial Services Pty Ltd ABN 24 637 026 825 an Australian Financial Services Licensee (AFSL no. 520266). Altus Financial Services Pty Ltd is not responsible for the advice, products and services provided by Altus Accounting. Julie Azzi is a credit representative (CR No. 366834) of BLSSA Pty Ltd ABN 69 117 651 760 (Australian Credit Licence 391237).
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