Understanding Pricing Strategies, Price Points And Maximizing Revenue

Ashley Deland is an award-winning business consultant & owner of Deland Marketing, recognized as winning Business Elite’s 40 Under 40.

Pricing can be challenging for entrepreneurs. As a marketing and business consultant, I’ve seen that a pricing strategy that’s too low can diminish profit margins, but pricing that’s too high can deter customers.

Finding the ideal price requires a precise strategy that’s appropriate for your brand. The pricing for a product or service needs to consider costs and what the market will bear. The market, or consumers, decide what a product is worth and will only pay so much.

Pricing Strategy Vs. Price Point

A “pricing strategy” is the approach you use to set the ideal price for your product. Your strategy must consider factors such as your revenue goals, product features and audience, as well as competitors’ prices, economic trends and consumer demand.

Price points are derived by observing the interaction between the demand and supply curve, which helps brands determine the possible profit margin for a product or service. Several factors contribute to the price points, but the demand and supply of the product or service must remain proportional to the price.

Click here to read more.