Price-setting strategy is one of the most important elements in reaching the general strategic goals of an organization. It takes into account the costs of your services and products, as well as the competitive environment on the market. The price-setting strategy will help you develop a wholistic plan of profitability for your business.
The price-setting strategy combines and includes:
- Setting goals for the price-setting strategy;
- Price-analysis of the market;
- Identification of customer segments;
- Development of pricing strategy;
- Developing discount policies;
- Strategy implementation and control mechanisms;
Companies with effective pricing policy have the ability to generate income in the long run and reach optimal profit margins.