Why is it so important to calculate prices?

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Given these findings, it is clear that pricing can be the key to success or failure.

To better understand the various aspects in which a pricing strategy impacts your company, we list the main advantages below:

increase sales;
maximize profits;
reduces risks;
adapts to the target audience ;
indicates the value of the product;
satisfies the consumer;
helps you face the competition;
ensures survival.
How to implement a pricing strategy?
While your customer's perception of value is extremely important when developing a pricing strategy, entrepreneurs and retailers must also take into account other factors.

These factors can be summarized in the 5 C's :

company objectives ( company objectives );
customers (clients);
costs (costs);
competition (competition);
channel members (value chain).
Does this seem a bit complex to you? Don't worry, panama mobile database we'll explain it in detail below!

Company objectives
The pricing strategy must be tailored to the type of marketing established for the business and reflect the business objectives so that they can become a reality.

A company with an exclusive goal of sales growth will have a differently oriented strategy than one whose strategy is luxury marketing, for example, with the goal of being a quality leader.

To simplify, we will give you four examples of different objectives with direct implications on pricing:

increase sales: reduce prices;
increase profits: increase the percentage of the unit's profit margin;
increase value: raise the price;
blocking the entry of new competitors: reducing prices.