Pricing Strategy

Pricing is a field that has its own set of challenges.

What are the trade-offs, for example, between the price of a product or service and its other value-added qualities and other influences that are in demand?

Because pricing is often less understood than other metrics such as sales and growth, the issues become much more complicated. In addition, many companies have a cultural tendency to favor discounting as a marketing tactic.

After that, there are market-based modifications. For example, savvy CEOs in business-to-consumer (B2C) companies drive sales by constantly changing prices in response to location, channel and customer behavior.

However, for companies that provide services to other companies (B2B), when customers are few, sales cycles are long and transactions are occasionally very large, these price changes may be less effective. In other words, while price optimization is essential in both contexts, the execution strategy can vary greatly.