5 Pricing Tips How Expensive Products Take Market Share
You don’t want to be cheap and you don’t want to sell inexpensive either. We discussed the 4 reasons you should aim high but pricing high can easily lead to market share isolation. The reason is simple – chances are that nobody knows your product; nobody knows your brand and nobody would risk paying a lot for something that they do not know. The easiest and most destructive approach to gain market share quickly is going low cost. The smartest is to be flexible and make sub segments inside your target group which you can price individually. Here are a few tricks to be flexible with your high listed pricing.
Pricing Tip #1: Discount Policy
You may want to negotiate personal discount policy with your key steakholders. In this way show your appreciation for their services, win long-term contracted partnership and build your brand as advocating them as partners. Credibility is one of the keys when fighting for a better market share.
Pricing Tip #2: Promo Codes
Create a flawless promo code strategy so you can reach specific target groups and make them feel special. Make sure that you sub market well and create the needed technical framework to avoid possible misuse.
Pricing Tip #3: Credit Terms
Leasing is a good trick that makes the client forget how much they are actually paying, so make use of that in your business. You can negotiate win-win terms for both sides.
Pricing Tip #4: Collective deals
The Groupon type websites are a great deal for short-term advertisement that you can afford and increase your market share. A 40% discount for three days is not going to tear down your business if you have initially set a high enough price margin. This, of course, depends on your scope of business as the acceptable price margin varies a lot from a business to business.
Pricing Tip #5: Allowances and B2B Services
Cooperation is often underestimated compared to the importance of sales in winning a targeted market share. Truth is that a good cooperation with a key steakholder may actually save you more money that they will ever pay for your product. So make sure that you stay with your eyes open next time when somebody is not willing to pay.
What is common in all these ideas is that the listed price remains untouched and speaks for your brand. Divide and conquer!