With everything going online, especially in the sales department, price is one of the ways to differentiate your company from the rest. That is why having a pricing strategy makes sense for your company. A pricing strategy tells a bunch about a company. It tells them about your product's value and how consumers value it. But with many pricing strategies out there, which ones are the best for you and your company? Here are some pricing strategies you must check out! 

1- Competitor-based pricing 

This pricing strategy focuses on pricing your products after observing the competition. Of course, it requires research on what your competitors are doing and their prices for you to create your pricing strategy. After that, businesses have three options for pricing their products with a competitor-based pricing strategy. 

• Price below your competitors' prices.
• Price match your competitors' prices.
• Price above your competitors' prices.    

2- Dynamic pricing 

Have you ever wondered why an airline ticket has one price one day, and a few hours later, it has a lower price or higher price? Well, welcome to the dynamic pricing rule. Dynamic pricing is a pricing strategy where the price of a product changes according to variations in market demand and other factors.   

Companies such as Amazon and Uber use dynamic pricing. And this trend continues to go up as more companies are using software to change their products’ prices more frequently. But be careful with price- gouging your consumers on tragic dates or events. 

3- Cost-based pricing 

Cost-based pricing is a pricing method based on the cost of production of the product or service. In other words, you calculate the cost of the product or service, and then you add a margin. For example, if it costs $3 to make an eraser, you add a 50% margin. In the end, the eraser costs $6. 

Conclusion 

These three pricing strategies will help your store beat its competitors. Before you pick any of these strategies, you got to think about which is adequate for your business, products, and brands you have. PriceTweakers is a pricing software that helps you grow your business. We offer you dynamic pricing where you keep an eye on the competitors and see what price changes they made so that you can make an informed decision that will increase margin and sales. You do this automatically and also make strategies and business rules. Are you interested? Contact us for more information. 

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