If you use a price skimming strategy or brushing market prices as

Their pricing is one of the marketing strategies you use in your business, and it is very important that this strategy is to do the right thing, because the pricing strategy right (with the right product and a strong marketing , sales business plan and deserve) to your company's sales and market share. A number of companies, often leaders in their industry, prices and market strategy touching or rubbing prices.

Price

An example of> Touching price or market can be seen in the computer industry, where technology sets the stage for this pricing strategy. A manufacturer of equipment comes with a new laptop every 80-10 months. The older models are not sold in the price move (found in mature or declining stage of its short life cycle), while the new model laptop (with new features and benefits) is in the introductory phase and is capable of, command prices higher. The teamManufacturer price skimming (also known as skimming the market) at different levels of the life cycle (introduction, growth, maturity and decline) and the maximum benefit to obtain the maximum price that will support all aspects.

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This strategy works when the market is large enough, if enough buyers when demand for high or service, and if the company has a good (and lower) cost structure. In the computer industry, for example, demand for notebook computers is high,There are many buyers and repeat customers and the industry has a low cost structure, technology is enabled.

The challenge for companies with this strategy, too many competitors in the market. If there are too many competitors, each with a full range of products at different stages of product life cycle, buyers have difficulty making decisions on quality or service or value for money. Inevitably, when there is too much competition tothe same buyer is to look for buyers of the laptop with the most features at the lowest price. And if you're not a company with the lowest price and most features will appear that are already overburdened and reputation and brand identity and sales can be affected by perception.

Before choosing this option, or pricing policy, make sure you accurately understand the behavior of his client and the decision criteria and make sure you have agood idea of ​​how your opponents act or react. Understanding your market is the first step in building a strong pricing strategy. The next step is to ensure that his proof of the pricing strategy at regular intervals to ensure that the decision criteria in choosing their strategy over time and is still relevant to changing market conditions.

If you use a price skimming strategy or brushing market prices as People search Price and look in this page

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