Pricing isMarketingIt is one of the most important components, mainly studying the pricing and change strategies of goods and services to obtainMarketing effectAnd the best returns.
Price elasticity of demand refers to the response of demand for goods to price changes.If the price changes slightly,requirementAlmost immobile, which is called inelastic demand for this commodity;If a small change in price causesChange in demandLarge or very large, called demand elasticity.
By studying theProduction conditions, service conditionprice level And other factors, according to their own competitive strength, and referring to the cost and supply and demand conditionscommodity pricePricing method of.
according tomarket demandThe method to determine the price based on the difference between the situation and the consumer's feeling of the product.It is also called market oriented pricing method and customer oriented pricing method.
The new product is initially launched at a high price. It will earn a large profit in the short term and recover the investment as soon as possible.It's like skimming milkcreamSimilarly, take its essence and call it "skimming pricing".
Penetration pricing
When a new product is first launched, the price is set at a lower price to obtain the highest sales volume and the largestMarket shareIt is called "penetration pricing".
Price discounts and allowances
In order to encourage customers to pay off the payment as soon as possible, and purchase in large quantities or off-season, the enterprise adjusts itsBasic priceThis price adjustment is called price discount andPrice allowance。
The buyer places an advertisement or sends a letter in a newspaper stating the requirements for the variety, quantity, specification, etc. of the goods to be purchased, and invites the seller to bid within the specified time limit.The buyer shall open the bid within the specified time, select the seller with the lowest quotation and the most favorable price to conclude the transaction and signPurchase contractPricing method of.
The pricing method is mainly based on the consumer's understanding of the value of the product.
Pricing Skills
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Non integer method
In fact, there are many skills in pricing, such as using the "non integer method", which combines thewholesale priceSales experts call it "non integer price", which is determined as a non integer with a odd end.This is a great way to stimulate consumersDesire to buyPrice of.The starting point of this strategy is that consumers always feel that the odd price is lower than the integer price psychologically.That is, the planned price of the product is 6 yuan, and you can set 5.9 yuan. The price is a dime lower, but the customer will respond well.For high-end goods, durable goods, etcInteger Pricing PolicyTo give customers a feeling of "paying for goods", so as to establish the image of goods.
Although "8" has nothing to do with "hair", it is better to believe what it is than what it is not.It is always right to meet the psychological needs of consumers.According to the foreign market survey, in the shopping mallssupermarketThe numbers used for pricing goods in, sorted by the frequency of use, are 5, 8, 0, 3, 6, 9, 2, 4, 7, and 1.This phenomenon does not happen by accident, but is rooted in the role of consumer psychology.The numbers with arc lines, such as 5, 8, 0, 3, 6, seem to be non stimulating and easy to be accepted by customers;Numbers without arc lines, such as l, 7, 4, are not very popular.So, in shopping malls and supermarketsSales price8 and 5 are the most common, while 1, 4 and 7 are much less common.In the digital application of prices, China's national conditions should be taken into consideration.Many people like the number "8" and think it will bring them good fortune;The word "4" is taboo because it is homonymous with "death";"7" means that people generally feel uncomfortable;"6", "9", because Chinese people have“Everything goes smoothlyThe statement of "long-term development" is very popular.
Enterprises inmarket competition China should forecast the change of supply and demand at any time.The Austin Retail Company in Wadmond, Germany, has been successful in selling all kinds of goods.For example, Osden just launched 10000 setsUnderwear wearThe price of the fashion is 4.5-6.2 times higher than the price of ordinary underwear, but the sales are still booming.This is because this kind of fashion has different wearing characteristics inside and outside the past. Customers feel fresh and attractive.However, in May 1988, when Germany's major cities successively launched a large number of such underwear outerwear fashions, Osden suddenly reduced the price to just a little higher than the price of ordinary underwear, which also sold out.In this way, 8 months later, when the underwear is not so attractive, Osden“Cost price”For sale, the price of each set of fashion is less than 60% of ordinary underwear. This kind of outdated clothes is still very popular in Austin.
Customer pricing method
Since ancient times, the seller has always offered and the buyer has always countered.Could you reverse it and let the buyer make the offer first?For example, the price of food in a restaurant is always determined by the owner. Customers can only order according to the menu and pay according to the price.But in the United StatesPittsburghThere is a "Milio" in the cityFamily restaurant”On the menu of the restaurant, there is only the name of the dish and no price.Customers pay according to their satisfaction with the food. No matter how much, the restaurant has no objection. If customers are not satisfied, they can pay nothing.But in fact, most customers can pay reasonably, or even more.Of course, there are also those who pay less, and even leave without paying a penny after gorging.But that is only a few after all.Letting customers set their own prices is not considered in Chinanew things。Such restaurants have appeared in some cities, but they are not successful after operation.It seems that attention should be paid to this methodSales conditionsAnd the sales target, after all.The quality of some people is still not high.
Extra high price method
Only unique products can be sold at a unique price.The ultra-high price method isNew merchandiseAt the beginning of the launch, the price is set much higher than the cost, so that the enterprise can make a lot of profits in the short termMarket situationTo adjust the price.There is a store in a certain place that has bought a small number of medium and high-end female coats,Purchase price580 yuan each.The operator of the shop saw that the materials and workmanship of the coat were very good, and the color and style were also very novelLocal marketIt hasn't appeared yet, so we set a high price of 1280 yuan, which was sold out quickly.If your product is very popular and you are the only one in the market, you can sell it at a higher price.However, this situation generally does not last long.The best selling things can also be imitated by others. Therefore, in order to maintain a high price, we must constantly launch unique products.
Nothing is more sensitive to price than the customer, because the price represents the money in his pocket. Let the customer feel that you only take a small part from his pocket, rather than a large amount.Price segmentation is a psychological strategy.When the seller sets the price, it can make the buyer feel the price is cheap.Price segmentation includes the following two forms: 1. Quote in smaller units.For example, 10 yuan per kg of tea is 0.5 yuan per 50g, 1000 yuan per ton of rice is 1 yuan per kg, and so on.Metro ParisOur advertisement is: "Only 30franc2 million passengers can see your advertisement. "2. Compare the prices of smaller units of goods.For example, "If you smoke one less cigarette every day, you can order a newspaper every day."
Bargaining is very annoying.As a result, many enterprises and stores use Buy It Now, never bargain, simply simple.Although this pricing method is simple, it is easy to lose customers.
High standard low running method
Some enterprises have set a unified sales price,wholesale price, and then through the way of rebate, give dealers rebate, through this way, stabilize and encourage dealers.In the store, the high price is adopted, and then the bargain with consumers is conducted, and the final transaction is made at any price above the low price.
Many factors must be considered in order to understand and set prices.The first thing to be clear is what the company's goal is to increasemarket share, improveEnterprise income, maximize profits, or other goals.IfMarketing DepartmentHave a clear grasp of the company's goals, then determine the priceMarketing mixIs a relatively easy thing.On the contrary, if the pricing deviates from the company's goal, it may take a lot of effort, and the result is not what the company wants.Therefore, the success of pricing depends largely on the pricing decisions and theFit。
So how can we understand what the company's goals are?Generally, there are two ways: first, enterprise executives (president of Asia Pacific region, general manager of China region, etc.) introduce the company's vision and annual plan; second, fromcompany websiteRead the report provided by the CEO of the company to investors.
customer
After clearly understanding the marketing objectives, it is necessary for us to understand the requirements of customers, because they decide whether the product pricing is correct or not.Although their requirements are not static, we must understand what they need now.This seems to be a very simple question. Some people will think that I do thisMarketing workIt has been more than ten years. Don't you know who my client is?However, sometimes we do not know, or we only know some of our customers, or we only know yesterdayTarget customers, but these people are no longer our target customers today.We often get feedback from sales, saying that the price is not good and the quality is not good,.But after careful analysis, we may find that we putTarget customer baseWrong, probably spent a lot of time withCustomer communicationHowever, these people are not our target customers, and may also be our customers, but they are not this part of the product.Therefore, after a period of time, it can be half a year or a year. We should ask ourselves who our customers are and what kind of customers we are looking for.It's very likely that what we're looking for isHigh end customersBut our products are low-end, so they don't match.This problem seems simple, even silly, but if we do not analyze it carefully, we may still mistake the customer.
Of course, you should also know how they buy.
competitor
influenceEnterprise pricingAnother important factor in decision-making is competitors, because in most cases, we are not the only company in the market. There may be companies of the same level, or more high-end companies, or companies of a lower level than us.We must know who our competitors are, what their strategies are and what their advantages are, as well as their costs, prices and possible responses to enterprise pricing.
Taking the camera as an example, a consumer who is considering buying a camera is makingPurchase DecisionPreviously, various brands in the market were compared, such asCanon、OLYMPUS、SamsungandSonyMake a decision on all aspects of price, quality and appearance, combined with the budget in hand.If Sony adopts the strategy of high price and high profit, other competitors will also enter this marketSegments。The strategy of low price and low profit may effectively prevent competitors from entering the market or eliminate them.Therefore, before setting the price, we shouldproduct price, quality and various aspects of performance have a comprehensive understanding, and based on this to position their own products, can make the product price more targeted and competitive.
cost
Cost is what enterprises can set for productsfloor price。If an enterprise cannot cover the costs of production, distribution and management when setting the price of its products, it may lose money and cannot bring corresponding returns to investors.The cost of an enterprise can be divided into two types:fixed costandVariable costs。Fixed cost refers to the cost that does not change with the output. For example, no matter whether the enterprise starts or not, it must pay the monthly rent and equipment for the factory buildingsmaintenance cost Heating and other expenses.And it can become cost directly withoutputThe level changes.Produce oneLenovo computer, will involveCPU, motherboard, display and assembly costs.Generally speaking, these costs are roughly the sametotal costIt is often proportional to the quantity.At the same time, there is a cost that is crucial in decision-making and should cause the enterprise to be important. That isAdministrative expenses。 A factory will have general manager, deputy general manager, director, etcmanagement layerIn particular, when an enterprise has many departments and many product lines, how much of the management's salary is allocated to a product line or to a department will directly affect the decision of the product pricing enterprise.
If we have such a product, its sales price is 100 yuan, and its cost is 110 yuan.,Is this product for sale or not?If the factory'sEquipment utilizationMore than 98%, the answer is very simple, no sales.If the personnel and equipment of this enterpriseUtilizationOnly about 53%, or less, we need further analysis.First, analyze the specific cost. If the fixed cost is 30 yuan,Variable cost50 yuan, 30 yuan for administrative expenses. In fact, the cost directly related to the product is only 80 yuan, and the price exceeds the direct costProduct cost, the more output, apportion toUnit productThe lower the overhead, so you should choose to produce this product.If the price of the product remains unchanged and the cost changes to 120 yuan, including 30 yuan for fixed costs, 75 yuan for variable costs, and 15 yuan for administrative expenses, then the decision is also very simple, and sales cannot be made. The costs of fixed costs and variable costs have exceeded the price. The more you do, the more you will lose.
Other factors
In the process of enterprise pricing, in addition to customers and competitors, other external factors must also be considered.Economic conditions of a country or region, such aseconomic cycle , inflation and interest rate have a significant impact on the pricing strategy of enterprises.If the economy is in recession, consumers'purchasing powerWeakening, enterprises may continue to maintain high prices, which may reduce sales.The government is also an important factor influencing pricing decisions,Marketing personnelWe need to understand the laws that affect prices. This is particularly obvious in terms of exportsExport enterprisesBecause they did not understand the local environment, they were subject to anti-dumping investigation.
Therefore, the market needs information from all aspects, first of all, the company's goal, the company's big strategy, and what the company wants in the next few months;Second, we should know who our customers areProcurement process, and ondecision-making processWhat do they care most about;Third, we must understand who our competitors are, what their strategies are and what their advantages are;Fourth, we must have an accurate grasp of the true cost, especially fromActivity based costTo analyze the cost of products.At the same time, external economic conditions and government and other external factors should also be considered.
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Pricing has many goals. Different enterprises have different goals in different periodsBusiness DepartmentThere will be different goals.The clearer a company or department is about its goals, the easier it is to set prices.Generally speaking, there are the following goals: the highestCurrent profitandprofit margin. Highest current income, highestSales growth, the highest market skimmingproduct qualityLead and survive.
Maximum current profit
Profit target is enterprisepricing objectiveIt is an important part of the enterprise's survival and development to obtain profitsnecessary condition, Yesenterprise operation The direct motive force and ultimate goal of.Therefore, the profit target is adopted by most enterprises.In practice, when we increase the product price by 5%, the sales may fall by 5%, but some companies will still adopt this strategy becauseoperating profitIt will exceed the level before the price increase.For companies and investors, they will consider many indicators, one of which isSales profit margin。If Company A has a sales volume of 1 million yuan and a profit of 100000 yuan, thenSales profitThe rate is only 10%, which will be unpopular with investors.If the sales volume of Company B is 500000 yuan and the profit is 80000 yuan,.On the contrary, it will be recognized by investors, because the sales profit rate will rise to 16%, although the company'sTotal revenueIt is declining. Investors prefer Company B because its sales profit margin is 16%.Therefore, investors value the profit margin of sales more than the total profit of sales.Of course, the premise is that this benefit isSustainabilityIf you sell some departments or assets of the company, you can make a lot of money in the current period, but this is unsustainable and does not meet the requirements of investors.
Maximum sales
Many Chinese enterprises pursue the scale of enterprises and hope to become Fortune 500 enterprises. In fact, what they pursue is not the top 500, but the top 500.At the beginning of 2008, there were a large number of enterprises in Fortune magazineNet profitIt is negative, but it is still among the top 500, because Fortune magazine considers sales.Business Week's selection criteria are different. It will consider many indicators and get a final result.There will be cultural factors in enterprises' pursuit of scale, and most of the time, it is to become bigger before becoming stronger.For example, many enterprises have passed theM&AIn order to expand the sales scale first, or to seek listing, it is just necessary to increase sales,.Therefore, different enterprises have different purposes in different periods.
Highest market share
Some companies want to maximize their market share. They believe that the higher the current market share, the greater the future profit opportunities.This fixed price target is used more when the company enters a new market segment.withTaoBaoFor example,Jack MaIn order to deal withEBayPossible challenges, enteringC2CThe market, through years of continuous investment, often guarantees Taobao to provide a free trading platform.More high-profile announcement that in the next few yearsReinvestment5 billion yuan on Taobao.He is thinking about market share. Although he does not make money at this stage, he will make money in the long run.Of course, there is another kind of company that is not even considering market share, as long as there isHitsYou can change money, so different companies consider different things at different times.
Highest market skimming
Many companies set high prices to "skim" the market through their own innovation and product differentiation.Sony isMarket-skimming pricing At the beginning, it firstNew product priceSet it high and then slowly descend.When Sony first launched its high-definition color TV in 1990, the price of this product was as high as $43000. In this way, Sony got the maximum skimming profit.As competitors entered this market segment, by 1993, the company had reduced the price to $6000.At the end of 2004, the 42 inch high-definition color TV set in Japan dropped to $1200.By setting high prices, enterprises can obtain high skimming profits, which is what most enterprises hope to achieve.Of course, there are conditions to achieve this price target. For example, the high price of the product must win customersValue identificationThe number of customers is enough to constitute the current high demand.
Leading product quality
Create highPerceived qualityThe products with good taste and status are the pursuit of many enterprises.These products are distinguished from competitors byBrand influence, consumers are rightproduct linesAnd occupy the high-end of the market.asApple IncOfiPhonemobile phone,iPodMP3 player、Mercedes Benz、EvianShampoo, VikingSeries of products、IBMComputer andStarbucksCoffee and other products are leaders in product quality in the industry. Through the quality, taste and high price of the product itself, a large number of stable and loyal customers are profited.To build such a brand, the key is to change customers' understanding of products through marketing and excellent product quality, which may take a very long process.
Survival
When enterprises face overcapacity, fierce competition or changes in consumer demand, they regard survival as their main goal.Taking Volkswagen as an example, it entered the Chinese market around 1982 and achieved great success.The reason is not how successful he is in the market, but that he made the right decision and "ventured" to establish two joint ventures in China.Due to the non competitive environment, the supply of products can not meet the demand. Only one Santana model can be sold for more than ten yearsdomestic marketThe share reaches more than 50%.But in the 1990s, as more American, Japanese and Korean companies entered the Chinese market in succession, in the face of more fierce competition, Volkswagen hoped to maintain its original market share. Despite taking many measures, it could not change the situation of declining share, which has fallen to about 20%.
