Business Momentum

Commercial Pricing Strategy Vs Inflation Adjustment

As we developed earlier in a report, the price is usually an adjustable variable cost of product development or service plus the expected profit margin, but learned that it is a mistake based solely on these two aspects to establish pricing strategy.

To Remember

The following aspects are necessary to take into account when establishing a business strategy in a global price stable:

• Competitive price, ie the price of competitors against the same product.

• substitute price is the price you have products that can replace the use of a similar product.

• Price received is the final price the consumer would pay in relation to the perceived value of the product or service.

The pricing strategy must be consistent with the positioning strategy, as if of quality, price shall be higher than average, and if it is a massive strategy then the price should be lower than average and the business will profits while selling enough volume.

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