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B2B Marketing

Pricing Strategy – Ask the Consumers

When it comes to pricing strategy, a company needs to be able to pay its employees, order more or build more products, and still see a positive return on investment (ROI) at the end of the quarter. An effective pricing strategy must be in place. This doesn’t just apply to new products. This is applicable to improvements and older products that should be adjusted in price for a variety of reasons.

Determining a pricing strategy can be tricky – too cheap, and the customer will not believe the product has any value – too expensive, and the customer will be as equally as turned off. The current market, for many consumers, is trending downward. People are looking for a good deal and ways to save money, not spend it. Asking the customer, via survey and product introduction, is currently one of the best ways to decide which pricing strategy will get the best ROI.

Survey Pricing Strategy – Offer Options

Structure the survey in such a way that it demonstrates what the product will do. Be sure to include the following:

  • Special features or attributes that stand out from other products or services on the market, such as a grocery list app that also offers real-time recall and safety alerts from the FDA, or a cereal that offers a special blend of anti-oxidants and vitamins that their competitor does not offer.
  • Attempt to generate some enthusiasm for the product within the survey, being careful to avoid sounding like a sales pitch. Phrases like, “company X is looking to introduce a new product that will revolutionize the way people use Y,” can generate enthusiasm but also are a sincere description of what the company hopes to accomplish.
  • Completely demonstrate what the product will do for its consumers prior to introducing the potential pricing strategy.

Once these items have been laid out, the most common way to go about determining pricing strategy is to ask the following questions:

  • What would be a “fair price” for this product?
  • What would be a price so expensive for this product that (the consumer) would not consider purchasing it?
  • What would be a price so low that (the consumer) would believe it was of no value?

These are excellent questions for determining a pricing strategy, but there is another tactic that can help assess best pricing strategy.

  • State the intended price – either using premium pricing, optional pricing, psychological pricing, or other appropriate pricing – and ask the consumer to determine price within those areas.

This gives the company more control over what the brand pricing strategy will be, while allowing the consumer more freedom in determining how much they feel they should pay for a certain product or service.

Overall, a good pricing strategy includes customer feedback, a practical and positive ROI, and plenty of leftovers to compensate employees.

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Kristine Michaelson

Kristine is a great marketing strategist who has been contributing to MarketingThis.com since our humble beginnings in 2009. She is a great researcher and enjoys writing about multiple B2B marketing channels.

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