Price strategy What factors condition the pricing Country Email List decision? Before setting a price we have to take into account the factors that determine the sale price, the objectives of that pricing policy and the strategy to follow. The company has to implement a price strategy within certain margins , using costs and minimum profitability as a lower limit Country Email List and, as a maximum, the capacity of market demand, a circumstance that is unknown Country Email List to the virtual market. competitive advantage . Our prices may be slightly higher.
Depending on the objectives , there are Country Email List different strategies. Therefore, it depends on which objectives we prioritize: profits, profitability, market share or image. Apart from customers and competitors, there are other interested Country Email List parties such as intermediaries, suppliers, creditors, managers and consumer organizations . The legal framework of each country can enter into the fixing of regulated prices , such as cartels at abusive prices by monopoly, loss sales to expel competitors, authorized prices or the exchange Country Email List rate and taxes. Technological changes in the market .
The products have to be profitable in Country Email List shorter periods of time, because the implementation of new technologies shortens life cycles, since they allow the proliferation of brands and innovations much faster. A very common mistake is to set prices separately for each product. The optimal thing is to make decisions globally, Country Email List since if we deal with complementary products, a price increase in one can reduce the demand for the other and if they are substitutes, the demand for one will increase if I raise the price of the Country Email List other. Differential Pricing Strategies Variable or negotiated price (houses or cars)