Viper Strategic

Effective Pricing in a Recession

Author: Neil Wilkins

Neil learnt his marketing with the likes of Orange, NatWest, BP Castrol and Ordnance Survey and now helps individuals and businesses to communicate more effectively. He trains and mentors marketers on professional Chartered Institute of Marketing qualifications through to post-graduate level.

Here are some of the key points they raised and you can read more by visiting www.managementtoday.co.uk

• Price should reflect the value of your offer and not be discounted
• Lure people with incentives like free delivery, extended warranties and monthly instalments rather than cutting price
• Ensure clients see the value by delivering prompt, reliable and trustworthy service
• Do not enter a price war even if competitors significantly cut their prices. Trade instead on your added value
• Investigate who is spending what and how quickly they pay and focus on providing loyalty rewards for them

Think about what the customer is buying rather than what you are selling. These tips apply whatever the economic climate but as Management Today points out, it is ever more important when the going gets tough and there's pressure to take your prices in a southerly direction in an attempt to feel competitive.

We also believe it's vital not to do something like pricing by sitting in a vacuum... the best thing is to talk to your customers. Find out what they value most about your products and services. Build up your marketing around those things and remember it's those things that will help you to maintain or even increase your prices... whatever the financial climate.

This blog was inspired by www.managementtoday.co.uk

- Posted on Tuesday 21 Apr 2009 at 15:30 by Neil Wilkins

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