Gamer World

What is the smartest price strategy?

. a. Offer the lowest price that you can afford to offer.
b. Pick a pricing strategy that is different from the competition’s strategy.
c. Choose a pricing strategy that communicates your competitive advantage.

The lowest price by itself is not feasible, you still have to make money and if the margin is too low you will not stay for long in business.

Pricing strategy that is different from your competition will not guarantee success, it comes down to your competitive advantage.

What is your product’s advantage, what benefits does it provide to the buyer. Just look at yourself, will you buy something just based on price?

Look at the iPhone, when Apple introduced it, there were many smart phones but none provided the elegance and ease of use that an iPhone provided. It was more expensive than the competition but it sold like hotcakes.

Wal-Mart is using a different strategy, but in order to sell at the lowest price, they manage and control their supply chain very tightly; from sourcing world-wide, setting quality standards, packaging, transportation, merchandising and information system. Headquarters knows within an hour what is being sold in each individual store.

This goods back to basic marketing

Hope this helps

Victor

http://www.internet-marketingtools.biz/

Marketing Mix/4 p’s: Pricing Strategies

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