China Sports Shoes Enterprises Counterattacking Giant Low Price Strategy

How to make some consumers obtain self-individuality pursuit with lower cost and simultaneously maintain the consumer demands of the middle class, in the face of Chinese enterprises catching-up declaration, the counterattack from Nike and Adidas has come.

Visiting monks give better sermons, it seems that all foreign brands will have a mythic process after entering China. When Coca Cola entered Chinese market, at one time it was presented as precious gift to friends on the New Year’s Day, but now who would think to drink Coca-Cola is a worthwhile thing to show off? Perhaps, under the impact of domestic brands, Adidas and Nike will return to normal brand identity sooner or later. But just because of this mythic and elevated process, so when Nike and Adidas decide to cut prices and enter the second and third-tier cities, and confront with domestic brands, they have had a groundless big strategic advantage.

Sports apparel is mainly consumed by young people aged around 16-35. In the first-tier cities, this group of people has more rich and mature brand recognition capabilities. But in the second and third-tier cities, young consumers’ recognition on a certain brand is influenced to a deeper extent by people around them, and their pursuit on self-individuality still have the imprint of traditional consumption concept. Compared with the first-tier cities consumption ability, how to make them get the self-identity of value concept is a direction that can win the recognition from this consumer group.

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When Chinese sports brands worried Nike and Adidas gave up tremendous product premium that brought by brand effect and went down the god world with getting off their high horse, the SLVR series products of Adidas had stationed in Adidas Global Brand Center in Beijing Sanlitun. The pricing of SLVR series products is as about three times as Adidas products, and the price of Y-3 series that mentioned previously is as more than ten times as normal sport products. That is because the consumption ability of Chinese people is increasing continuously, nowadays, China has already exceeded America and become the world’s second largest consumer of luxury goods. LV, Chanel, etc. have been sinking to Chinese second and third tier cities.

Nike and Adidas products have been in the position of high-end brands for a long time, which has brought enough product premiums for them, but in the process of their gradually returning, these product premiums will become advantages for them to cut prices. The 2009 Four Quarters Earnings Report released by Nike in 2010 shows that its pretax profit in China is up to 40.3%, but in comparison the pretax profit of North American market is only 24.2%. 40.3% pretax profit has left sufficient price reduction room for Nike.

In the UBS report, generally speaking, the scale of Chinese sports  market in 2010 is expected to reach 69 billion Yuan, and in 2020 the scale of famous brand sports market will reach 297 billion Yuan. In the face of such large pieces of cake, the competition storm between Chinese and foreign sports brands will come on.

Above provided by SelectChina.com, and find more information on China Shoes Manufacturers / China Shoes Products.

Retail Pricing Strategy to Maximize the Profit

Determining the right retail price for items you purchased from wholesale suppliers can make a huge difference. It can determine the success and profitability of an item for sure, especially when you are selling the merchandises through online stores or other ecommerce platforms such as eBay. With clothing purchased from wholesale clothing suppliers, the importance of setting the right price to make sure the fashion pieces are selling greatly is simply too high to ignore.

Before you can set the right price, you need to understand the wholesale formula I discussed earlier. The formula will enable you to determine the right cost of goods sold (COGS) value for items you purchased from favorite wholesale clothing suppliers. From the last example, we have as our base COGS. Using this amount, setting retail price for the item can be done easily.

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All you need to do to set the basic price is add the amount of margin you would like to earn from each sale. A good rule of thumb is to multiply the amount by 2 to 2.5; in this case, 2 x gets you . Use this base price as your ground to making pricing decisions. The average t-shirt price on eBay is set around to depending on the quality of materials and build, so your base price is actually within market average.

Continue with modifying the price to suit your target market. If you are aiming at premium target consumers, you can set the price at psychological .95 limit. If you are aiming at lower market segment, you can still reduce the price to as low as .95 for faster turnover. Remember that you also multiplied the actual cost by two when you use the wholesale formula, so you still have a lot of potential profits to pocket.

By using the right pricing strategy, you can attract customers and generate more sales while still keeping your profits at acceptable level. As your revenue increases, you will also enjoy a large sum of profits at the same time. It is also possible to set some margin off for promotional offers and discounts as well.

I always buy wholesale goods from Cheerwholesale.com in China. It is a professional and reliable shoes, clothing, bags and fashion accessories wholesaler, retailer and dropshipper. Low prices make me easy to determine the right retail price and have stronger competition. Here is their website for sharing:  http://www.cheerwholesale.com

‘Rogue Retailer’ Shaun Mooney discusses effective pricing strategies that he has used with clients that have instantly grown their bottom lines. This clip is from the Fast Retail Profits Program. To learn more go to www.fastretailprofits.com
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How To Sale On eBay – Pricing Strategy

Business owners in the real world realize that pricing is an integral part and controlling part of their business. When learning to sale on eBay the seller must realize that pricing is equally as important. Not all sales on eBay or the way of selling on eBay demand the same pricing strategy. Pricing strategy breaks down into the following.

Starting Bid Price

This is the price, which you will set as being the starting price that you wish your interested buyers to start bidding from. You should arrive at this price as being the lowest sale price of the item, bearing in mind that you may receive only one bid of plus a penny.  This means that once the auction starts you will definitely sell the item regardless of how much has been bid.

Reserve Price

This is the price below, which you will not sell. By setting a reserve price you are reserving the right to withdraw the product for sale if the highest bid price is lower that the reserve price you set. By withdrawal it gives you the option of adding value to the product for auction at some future time. Utilization of reserve pricing will never lead to negative feedback because bidders will know that the pricing is that of a reserve price.

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Buy it Now Price

When setting a buy it now price you are saying to your audience of potential buyers that there is only one price. There is no auction, do not expect to get this product for any other price that that which has been set. In other words you are maintaining the integrity of the product as having a specific value.

But is it only these three prices that will affect an eBay buyer’s decision to purchase? When learning how to sale on eBay you will realize that buyers take note of the delivery price. Searches for items are often conducted on the basis of cheapest items with cheapest delivery. Setting a selling price and an artificially high delivery price will not work. Set your prices fairly and if possible see if you can set your prices at a level that will enable you to offer free delivery. This will attract more bidders and as a result more customer. Free delivery is a great sales tool to separate you from the majority of the others.

Pricing strategy is an important aspect of selling on eBay; it can make or break the success of a seller or merchandiser. If you are not sure what pricing to use, look in the real world for indicators. Find the value of the product in the real word; find out the value of similar products on eBay, what did it cost you? How much profit will you make if you sell at (a), (b) or (c) prices? Don’t forget to take into account any packaging or delivery costs.  Differing products will attract different prices, but if you get your pricing right you will make good money.

For further information on the different aspects of doing business on eBay and to learn how to sale on eBay. Visit eBay unmasked which provides many articles and videos that will help you on your way.

What are Closing Stock Market Prices?

Basically, the stock market closing prices are the prices at which different stocks which are traded in the stock market are closed. Suppose that the price of a certain stock closes at a level of 286 and another one closes at a level of 295. These figures are then called the closing stock market prices of the respective stock.

There are millions of buyers and sellers of stock in the stock market. The price of a stock is determined by how many times it has been bought and sold in a single trading day. If the stock opens at low prices and has greater bought quantities compared to its sell quantities, its price would become higher compared to the previous trading day. If the same trend continues until the end of the trading day, its closing prices would also definitely be higher. This is how the stock market closing prices are determined.

The stock market closing price is very important for you since it will help you in making the right investment decision. It is an indicator of the behavior of a particular stock. You can try observing the behavior of a stock by using the closing prices as a sign. If the stock closed at a level lower than the opening price, it means that the stock is losing steam. The opening price is the price at which the stock opens and is resultant of the previous closing price added with the orders of buy and sell. Once you know the behavior of a certain stock by observing its closing stock market prices, you can then analyze and create better decisions in investing.

Maximizing profit by solving customers problems over the long-term
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Product Pricing Strategy For A Small Business Providing Consultant Services

It’s never easy to decide what to charge for your consultant services.  But as a small business owner you need to be payed.  So how do you decide what you’re worth and what you’ll ask in price?  Here’s a strategy to get fair compensation for your efforts, make your customers happy and maximize your overall earning power.

The simplest way would be to price your services on an hourly basis at a rate that reflects the level of service you provide. You’ll want to offer a rate that is competitive (so know what your competition charges) and appropriate for the types of clients you are looking to work with again relative to the level of services you offer.

BUNDLE SERVICES TO CREATE PRODUCTS AND SIMPLIFY PRICING ….

Using your hourly rate as a base, you can package your rates into bundles or banks of hours for different services.

For example if you know that social media audits and top level recommendations takes you on average 3 hours to complete, then you could package this as a product and bundle your 3 hours together as a total price.

FLAT PRICING AND PRICE RANGES ….

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Clients find it easier to understand what they are getting and have an easier time buying in to a service when you package services and outline what’s included with a flat price or price range. Hourly consulting works better for ad-hoc requirements to offer flexibility.

BRANDING SERVICES TO CREATE EASY TO UNDERSTAND PRODUCTS ….

Other ideas for pricing tie into branding your services to make them more tangible to a client. For instance putting together a LinkedIn primer and strategy package where you show clients how to maximize results through LinkedIn.

The idea is to streamline your packages and service offerings so that they are easy to implement and replicate for other clients while being transparent to the clients in what they will receive.

INTRO PACKAGES TO GAIN MORE CLIENTS ….

You can use low cost intro level services to allow clients to see what you can do for them at a lower risk and then upsell them once you’ve gained their trust. So have a few smaller “products” priced at a lower cost to help you penetrate the market without having to discount your services.

FREE CAN BE A GREAT PRICING STRATEGY ….

You can also offer the equivalent of sample “products” such as 1 free hour of consulting or offer a free hour with every 10 invoiced – you get the idea…

MONEY BACK GUARANTEE ….

Offering clients a guarantee such as “If you’re not happy working with me, you can walk away and not pay the invoice” can also help seal the deal.

Of course you want to be careful to limit the timeframe of the guarantee
to one package or the first month to prevent an unscrupulous client from unethically taking advantage of you. Most often though, hardly anyone will invoke your guarantee unless your services are really sub par.

As you can tell pricing is not a simple exercise, but there are many opportunities to find the sweet spot for both your and your clients.

My last parting advice is to always link pricing to value wherever you can because that’s what you want your clients to see – the great value you provide at the price you’re asking.

tinyurl.com Studies have shown that pricing is the most critical profit driver in todays competitive business environment. The Wharton Pricing Strategies program teaches executives to make better pricing decisions through theory analysis, simulations, and case studies. Participants acquire a set of quantitative techniques that will help overcome the challenges of pricing new products, bundling products and services, dynamic pricing, and pricing products with short lifecycles.
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Retail Pricing Strategies

There are a lot of factors that can influence the profitability and a retailer’s bottom line. Setting the right price is a crucial step towards achieving that wanted profit. One of the main objectives of retailers is to make a profit, but figuring out what and how to price products may not be as easy as it seems.

Before you can determine which retail pricing strategy to use in setting the right price for your retail products, you must first know the costs associated with the products. Two key elements in factoring product cost is the cost of goods and the amount of operating expense.

The cost of goods includes the amount paid for the product, plus any shipping or handling expenses. The cost of operating the business, or operating expense, includes overhead, payroll, marketing and office supplies.

Regardless of the pricing strategy used, the retail price of the products should more than cover the cost of obtaining the goods plus the expenses related to operating the business. A retailer simply cannot succeed in business if they continue to sell their products below cost.

Now that you understand what your products actually cost, you should look at how your competition is pricing their products. Retailers will also need to examine their channels of distribution and research what the market is willing to pay.
Many pricing strategies exist and each is used based on particular a set of circumstances. Here are a few of the more popular pricing strategies to consider:

Mark-up Pricing

Markup on cost can be calculated by adding a pre-set (often industry standard) profit margin, or percentage, to the cost of the merchandise. Markup on retail is determined by dividing the dollar markup by retail. Be sure to keep the initial mark-up high enough to cover price reductions, discounts, shrinkage and other anticipated expenses, and still achieve a satisfactory profit. Retailers with a varied product selection can use different mark-ups on each product line.

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Vendor Pricing

Manufacturer suggested retail price (MSRP) is a common strategy used by the smaller retail shops to avoid price wars and still maintain a decent profit. Some suppliers have minimum advertised prices but also suggest the retail pricing. By pricing products with the suggested retail prices supplied by the vendor, the retailer is out of the decision-making process. Another issue with using pre-set prices is that it doesn’t allow a retailer to have an advantage over the competition.

Competitive Pricing

Consumers have many choices and are generally willing to shop around to receive the best price. Retailers considering a competitive pricing strategy will need to provide outstanding customer service to stand above the competition.
Pricing below competition simply means pricing products lower than the competitor’s price. This strategy works well if the retailer negotiates the best prices, reduces costs and develops a marketing strategy to focus on price specials.
Prestige pricing, or pricing above competition, may be considered when location, exclusivity or unique customer service can justify higher prices. Retailers that stock high-quality merchandise that isn’t available at any other location may be quite successful in pricing their products above competitors.

Psychological Pricing

Psychological pricing is used when prices are set to a certain level where the consumer perceives the price to be fair. The most common method is odd-pricing using figures that end in 5, 7 or 9. It is believed that consumers tend to round down a price of .95 to , rather than .

Other Pricing Strategies

Keystone pricing is not used as often as it once was. Doubling the cost paid for merchandise was once the rule of pricing products, but very few products these days allow a retailer to keystone the product price.

Multiple pricing is a method which involves selling more than one product for one price, such as three items for .00. Not only is this strategy great for markdowns or sales events, but retailers have noticed consumers tend to purchase in larger amounts where the multiple pricing strategy is used.

Discount pricing and price reductions are a natural part of retailing. Discounting can include coupons, rebates, seasonal prices and other promotional markdowns.
Merchandise priced below cost is referred to as loss leaders. Although retailers make no profit on these discounted items, the hope is consumers will purchase other products at higher margins during their visit to the store.

As you develop the best pricing model for your retail business, understand the ideal pricing strategy will depend on more than costs. It also depends on good pricing practices.

It is difficult to say which component of pricing is more important than another. Just keep in mind, the right product price is the price the consumer is willing to pay, while providing a profit to the retailer.

Marketing Strategy Template

How will you get current shoppers to refer more home business to you? The eleventh aspect of your advertising strategy template is figuring out how to raise your transaction costs and appear at bundling merchandise so that you can make much more income per transaction. Lastly, the twelfth and closing area of your promotion method is your retention method. That is, how are you going to get consumers to become clients for everyday living and maintain having to pay you and purchasing your merchandise and providers over and above all over again. If you can attain this, you can leverage all of the promoting prices and expenses that you incurred making an attempt to draw in people prospects in the 1st location.

 

In this sort of a aggressive market place, companies wishes to use a good template promotion tactic. With the progress of new technologies incredibly a variety of enterprises are heading on-line for their marketing and advertising and marketing wants. That’s because the net is an economical way of executing enterprise specially in advertising and marketing and advertising. Think it or not, do you know why most promotion efforts fall short? The reply is essential they genuinely really don’t use a fantastic template promoting method.

 

Every time you function on the web, in anything you do, you will need to use a advertising approach that’s templated. The previous thing that any organization wishes would be to shell out time, dollars and energy, only to find in the conclude that it doesn’t purpose. Even even worse is that they do not even know “why” it didn’t function.

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It’s truly critical that you know how elements get the job done, why it works and when it’s heading to operate. A great deal of individuals try the social networking internet websites like Twitter, Facebook and YouTube as piece of their advertising techniques. They also attempt other approaches like web site posting and guide promoting for the intent of finding far more readers.

 

In order to be productive with these types of social media advertising and marketing efforts, you have to have a absolutely good template promoting tactic which will help you comprehend how and why your marketing operates.

 

Below are hints that you need to have to do to be able to be capable to assemble an useful template marketing approach.

 

Recommendations ON Developing A TEMPLATE Advertising and marketing Strategy

 

Produce/Recognize your message
? It’s crucial that your method or your marketing template has a definitely great key phrase in it so that you only could be discovered by your target market.

 

Choose / Select your media
? You are in a position to do video marketing, report promotion and advertising and marketing, RSS feeds or bookmark techniques, and even Pod Casting. Just commence with one that you are secure with and genuinely don’t move on towards the other people right up until it is doable to produce a great marketing template strategy that works.

 

Get your message out to the market site
? It is doable to do this by syndicating that message.

 

Track your message/ website traffic
? When you make a video clip upload them at YouTube, Viddler and all varieties of different video web pages. Make positive you track the customers to see if the tactic is in reality working.

 

In circumstance you want to know a lot extra about discovering a significantly better marketing method that will aid you produce a in fact superior template marketing approach go to http://www.contentmarketinggenius.com.

 

 

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New 380 Sells Low Price Strategy

Mitsubishi Group of Companies has reinvented its Adelaide-built 380 sedan by introducing a Series III with high value but low price strategy.

As the Japanese car maker tries to keep the Tonsley Park plant continuously building cars, Mitsubishi has decided to go for the throat in pricing the large sedan against its six-cylinder rivals particularly Holden Commodore, Ford Falcon and Toyota Aurion.

Mitsubishi Motors Australia president Robert McEniry recently said they believe that with the metamorphosis of the product line-up, the 380 Series III, is now, more than ever, the best vehicle for Australian families.

Despite for this year’s high demand for Mitsubishi’s imported product, sales of the 380 have dropped 18 per cent as it targets to sell 1000 unites per month. This just goes to snow that the new Series III is very important to the Tonsley Park plant’s immediate future.

Though not really stated, we must expect that to reduce the toxicity of emissions from an internal combustion engine, Mitsubishi has equipped the 380 with an improved Mitsubishi catalytic converter.

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The 380 features a refreshing interior, external design enhancements, specification upgrade and realignment of model variants.

Throughout the range, a 3.8-litre V6 engine giving 175kW power is still standard. Majority of the versions have a five-speed automatic with sports mode sequential shift and some are also available with a five-speed manual gearbox.

Standard equipments on all 380 models are dual front and side airbags, ABS anti-skid brakes, automatic climate control air conditioning and heating, power windows, cruise control and power-adjustable driver’s seat.

A new sports front bumper, fog lamps, alloy wheels and traction control are the features of the entry-level ES, which costs ,990 for manual and ,990 for automatic.

And to spur the launch of the Series III, Mitsubishi is offering an extra package. It includes the “ES Sports” which adds rear wing, larger (17in diameter) alloy wheels, upgraded sports suspension, sunroof and Bluetooth phone connectivity, with no addition to its ,990 price.

Glass’s Guide exhibits the entry-level Commodore at ,490 for four-speed auto, the Falcon manual at ,990 and the Aurion also at ,990 for six-speed auto.

A 380 GTL is added to the Mitsubishi range. It is a luxury version of the GT model with leather interior and sunroof and priced at ,990.

Mr. McEniry said that over the past 18 months, the customer satisfaction level of 380 buyers had increased and it is helped by its fuel economy. According to him, production rates of the 380 at the Tonsley Park plant made it “a more than sustainable business model” and it was planned that the plant would maintain making the 380 until 2011 wherein time future models would have been considered.

Watch out for the Mitsubishi 380 Series III cars as they go on sale from July 29.

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Pricing Strategies in Retail

Pricing of a product is vital for a retailer. It determines the profit and is one of the major marketing mix tools. Therefore retailers have to be very careful while choosing the pricing strategy to achieve profit goal. They need to design good pricing strategy for particular brands, categories, stores and markets. Before we determine which retail pricing strategy to use in setting the right price, we must know the costs associated with the products. Two key elements in factoring product cost are the cost of goods and operating expenses. The costs of goods include the price paid for the product, plus any shipping and handling expenses. The cost of operating expenses includes overhead, payroll, marketing and office supplies. To succeed in business, retailers need to assess their distribution channel and research on market potential to pay.

Pricing of products depends on the strategies of the retailers. To introduce a new product, the retailer can opt between running promotions and low pricing in the initial stage until the demand rises for the product in the market. To maintain a decent profit, the retailers can use ‘Manufacturer Suggested Retail Price’ (MSRP) and they can avoid price wars. Retailers considering a “competitive pricing strategy” need to price competitively and provide outstanding customer service to stand above the competition.

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Before pricing product, the retailers have to consider the location, exclusivity and/or unique customer service which would help to justify the higher prices. Some of the supermarkets are usually located in places where the upper class families reside. In such localities the retailer can charge higher prices to the products as the upper class families would buy products by brands even when the price is a little high. Therefore retailer has to know the consumer behaviour.

Retailers would give a discount offers to the customers depending on type of customer targeted and type of item offered. Example: Retailer can offer a cash discount as reward to the customers who pay cash promptly or on time, quantity discount to large volumes buyer, seasonal discount to the customers who purchase as per season and charge less when the customer purchases a bundle or several related items together.

Some of the retailers have assumption that they can win their competitors in the market by fixing a low price. However lowest pricing strategy does not allow retailers to attain profit in the long run. It is better for retailers to avoid the low pricing strategy and start with looking at the demand in the market by examining three factors:

Retailers need to look at the competitor’s pricing, cost, market price, discount offers and promotions to compete with their competitors.

The retailer should not fix the price above ceiling price as the ceiling price is the highest price the market will bear. If the product price is above the ceiling price then customers will not be able to purchase such products.

To make effective decisions, retailers have to accurately predict market demand. As demand is intrinsically connected to price, price elasticity is an essential computation for today’s successful retail marketers.

Retailers need to consider few factors before fixing price to their products as per locality, customer   preference, and standard of living of customer and brand preferences. Smart use of pricing strategies can attain optimized profit and revenue.

CustoLogix with its wide experience in statistical analysis helps retailer to improve retail profitability through Analytics. To know more about various uses of data for retailer please visit CustoLogix atWatch your traffic increase just by submitting articles with us, click here to get started.
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Fisher College of Business professor, Larry Robinson, explains how a market segment reacts to value-based strategies. He uses the iPhone as an example of value-based relationships. fisher.osu.edu
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Related Pricing Strategy Examples Articles

Market Penetration Pricing – A Quick Market Entry Pricing Strategy

This strategy is used in price sensitive markets. For example, consider the market for DVD players; it is a high volume market, it has a high number of competitors, the costs to produce DVD players have fallen, and new and/or changing technology allow businesses to rapidly introduce new features and benefits on new models. The businesses that introduce DVD players quickly, sell high volume at low or reasonable prices, are following a market penetration strategy.

Businesses using market penetration pricing are usually trying to penetrate the market by growing their share of the market. They assume that the lowest price will win market share. Make sure that if you use this pricing strategy that you test your market, your price sensitivity and your price elasticity or in-elasticity first. Also be sure to do your market research to gain an understanding of how your competitors will react to this penetration pricing strategy. For example, your low price may cause your competition to lower price, then you will lower your price again, and so on – no one wins with a strategy like this.

But your market penetration pricing strategy can also be a deterrent for new competitors who are considering entering the market. When they see how low your pricing is and realize that their margins will be low and the risk of gaining market share for new entrants is high, they might choose not to enter the market. For your business to be successful with this strategy, it must have the capability to enjoy the economies of scale that high volume will bring and be the low cost provider in the market.

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If you are an existing business and your competitor is following a market penetration strategy, do a thorough market research assessment of your capabilities:

 

Can you drive your costs down?
Can you produce high volume?
Do you want to sell your product at a low price (and hope volume sales will get you both the market share and the profitability you want)?

 

If you answer no to any of these questions, don’t follow this penetration strategy (or at least, consider this strategy very carefully). However, if you are a new business considering this strategy in a new, or scarcely populated, market, focus on how to drive your costs down and your efficiencies up.

Whatever pricing strategy you use, make sure that you specify it in your marketing mix plan and write down the reasons you chose that strategy. Then, at least on an annual basis at the time of your business plan update, review your chosen marketing strategy (including your pricing strategy) and ensure it is the right strategy for the product life cycle, for the market conditions, for your buyers, and for the competitive environment at that time.

For more information on pricing strategies, visit http://www.more-for-small-business.com/pricing-strategy.html and for more information on small business strategies and advice, visit http://www.more-for-small-business.com/
Kris Bovay is the owner of Voice Marketing Inc, a business and marketing services company. Kris has 25 years of experience in leading large, medium and small businesses. 
Copyright 2008 Voice Marketing Inc.