Pricing & Market Messaging.
OK , now that you have created a product or ready to offer some service as a solution to peoples problems you’re probably anxious to maximise your income and grow a successful business. Perhaps you’ve been involved in a business for a number of years, but have struggled to boost sales, or even get a foothold in your niche.
Wherever you are in the process, your goal should be to develop a successful pricing strategy that positions your brand above your competition.
If that sounds difficult to you , let me tell you that it is not at all!
The key is to get to know your market and to determine, how you could use pricing as a powerful positioning tool.
For example, Dollar Stores in particular use pricing as a positioning tool to encourage consumers to shop at their outlets in order to save money. This is referred to as penetration pricing.
At the other end of the scale, there are companies who have positioned themselves as premium or luxury providers of products, often employing a scarcity element into their marketing, and the prices of the products they sell reflects that, companies for instance that sell high end watches , fashion and luggage items. Pricing is sometimes adjusted when competition demands it and thus giving them a more competitive edge.
This is referred to as price skimming.
There are many different ways you can utilise the power of pricing as a positioning tool in order to reinforce your brand name and maximise your income.
It begins by making the decision what your point of entry will be, and choosing a pricing model based on your product or service.
You should understand that whatever price point you choose, you will be alienating certain customers. Whether you go in with a lower price point, a higher one or somewhere in the middle, it’s impossible to appeal to everyone.
And that’s okay!
Because in truth; a product cannot be all things to all people.
Business owners and companies who attempt to please everyone often find themselves in a stagnant phase of growth. When the focus is too broad, and you haven’t identified your core audience, you’ll always chase the sale.
In reverse, the more you know your target audience, the easier it will be to attract customers and build a loyal tribe of buyers. You’ll know what is most important to them and can align your marketing message to highlight those benefits.
A good marketing message is not always easy to write because your message is most probably competing with all the others for the target customer’s attention. A good message will be engaging, to the point, be memorable, and hopefully eventually lead to a purchase decision.
No matter who you are, what you’re selling, who you’re selling to or how you do it, you need a message. Your objective is to tell people about you and what you do and why what you have on offer is going to be the best your customer can buy.
The better your marketing message the better it will resonate with your audience making it easier for you to target them in future campaigns.