Struggling with Pricing Strategies? Seattle Biz Coach Provides Solutions

Aug. 4, 2011 - PRLog -- In the wake of an Accenture study, which shows pricing strategies a major concern for global companies, Seattle Biz Coach Terry Corbell provides eight strategies for better pricing and more profit.

“If you’re struggling with pricing strategies, you’re not alone,” says Mr. Corbell, the business-performance consultant who provides proven solutions for maximum profits at http://www.bizcoachinfo.com.

“Almost 90 percent of executives in a global survey forecast their continued growth, but they anticipate implementing just minimal price increases as they continue to slash costs, or at least closely monitor expenses, for positive cash flow,” notes the profit professional.

“Accenture reports that’s the conclusion following responses from 1000 chief financial officers (CFOs) and chief marketing officers (CMOs), who were surveyed across eight industries in 12 countries,” he observes.

“The continuing volatility in the global economy continues to be a catalyst for more due diligence,” adds the management consultant. “Seventy-one percent of the CMOs say pricing strategy ranks among their three most-salient objectives.”

So, pricing strategies are universal dilemmas.

“Often, a company mistakenly sets prices solely on its own perspective as the seller,” writes Mr. Corbell. “Advertising doesn't work well unless businesses focus on the perspective of the customer about value – not solely on offering the lowest price in the marketplace.”

He says a minority of customers focus solely on price – people who can’t afford not to save money, and people who want to save money.

Mr. Corbell’s research shows at least 80 percent will base a buying decision on five psychological perceptions of value.

Therefore, in the following order, he says you must know the answers to these questions: “What does the customer think of you and your employees, company image, product or service utility, price and the convenience of doing business with you?”

Mr. Corbell’s definition of marketing: “The understanding of your customer for the cost-effective process of selling the right product or service at the right time and at the right price.”  

Mr. Corbell’s eight basic pricing steps:

1.Conduct a full-scale SWOT analysis of your strengths, weaknesses, opportunities and threats.

2. Analysis of your marketing strategy, which includes an assessment of your marketplace, targeting and branding.

3. Determine your marketing mix by defining your channels of distribution and campaign maneuvers.

4. Forecast your demand curve by anticipating how your product quantity will fluctuate with the price. Not to oversimplify, consider whether an increase in price decreases your revenue or a decrease in price will increase your revenue.

5. Gauge all your costs – be sure to determine both your fixed and variable costs. Fixed costs, such as office rent payments that remain at the same amount. Variable costs, such as fuel for your vehicles, can change because of gas-station prices or if your vehicle mileage go up or down.

6. Anticipate your marketplace dynamics or environmental factors – whether they are competition or legal considerations, such as government regulations, or impacts from short-term or long-term strategies.

7. Slate your pricing goals. That can include maximizing your profits or stabilizing your prices.

8. Establish your prices, including your methods and structure. Determine the limits of what you’ll offer in discounts.

As a business portal, The Biz Coach has hundreds of “Proven Solutions for Maximum Profits” in these topics: Planning, Operations, Marketing, Sales, Finance, Tech, Public Policy, Human Resources, and Wall Street.

The Biz Coach also has informative videos from authoritative media sources on late-breaking events: World, U.S. Business, Economy, Sci-Tech, Health and Sports.

Mr. Corbell’s bio: http://www.bizcoachinfo.com/bio-of-terry-corbell

His business-performance services: http://www.bizcoachinfo.com/managemen-services

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Seattle Biz Coach Terry Corbell is longtime columnist and business-performance consultant. The profit-professional publishes performance-enhancing strategies at The Biz Coach: http://www.bizcoachinfo.com, Proven Solutions for Maximum Profits.