The Importance of PricingPublished :
The determination of price strategies and of individual product pricing is of major importance to the success of many companies. The most common type of pricing strategies are supply and demand related. Interestingly enough, price is the only revenue-creating element in the marketing mix.
A significant part of the customer behavior has nothing to do with economic and rational explanations. Results from many studies conducted in large metropolitan areas in North America discovered that only 25% of the shoppers were motivated by price alone. Research has also shown that shoppers patronize certain stores because of their reputation, friendliness, image and other intangible elements. The emotional connection is being recognized as a major trigger in the decision making process.
With more than 10 years of success, quality and integrity with our water care products, SilkBalance is also operating effectively by establishing our pricing decisions on assumptions about customer behavior, and most of the assumptions are of a psychological nature. Consumers usually tend to perceive prices in a non-economic manner and that value is their main consideration when buying a product. The SilkBalance brand continues to sell value as other commodity products will compete only on pricing. Always something to think about.
By Yves Campion, MBA
Vice President Sales and Marketing
Silk Water Solutions (Inc)