Improve your pricing performance
Price setting and then implementing the price you’ve set requires discipline. There is no luck involved, but rather a skill you need to develop. You can improve your pricing performance, provided you approach pricing in a structured way.
Once you have set your product price, you must monitor pricing and profitability, not just in holistic terms but by product – what is selling and what’s not, and at what prices? Which are making you money, or hitting your GP targets, and which aren’t?
Some of the triggers to review pricing of a product are:
it’s not selling
you’re introducing a new product
your costs change
competitors increase or decrease prices
competitors introduce a new product
changes to industry or economy.
While the temptation to cut prices can be difficult to ignore, particularly in challenging environments, it can lead to undesirable results. Focus on marketing your strengths and price accordingly, even if it means an increase in prices. And don’t forget the mantra of “research, set, monitor and repeat”.