The second element in the Marketing Octave is price. With sales down everywhere, it may be time to review your pricing. What is difficult is to ensure you don’t harm your reputation or your profits with the review.
Six questions to ask about your pricin:
- What are products are no longer moving? Consider deeply discounting those while maintaining the price structure of the other products/services.
- What are your competitors doing? Competitors need to be tracked closely but not always matched. You don’t want to make the same mistakes they may be making.
- Can you simplify pricing? You may be able to give the illusion of lower prices by simplifying or packaging your offerings.
- What type of discounts can you offer? Be creative here. Brainstorm offers that still fit your brand and reputation but still stand out.
- What could you added as a value-add rather than discounting?
- What is your cash flow on each sale? While this seems like a “duh”, sales team may be still be compensated on unit sales. While margins may need to be adjusted, so must revenue goals. Track your sales team’s potentially deep discount levels needed to reach their sales goals. .
What are some of the ways to find out about your pricing? Check out your competitors. Mine comments on social media about your product and pricing (such as Twitter, Facebook, etc.) Send out online surveys to a customer panel about your pricing. Test different offers with your tactics or by geography or target. In our next installment we will look at promotion questions. Getting back to the basics is important right now.