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Topic: pricing strategy

Why and How Should Businesses Give Trade Discounts?

There are advantages and disadvantages to offering trade discounts. Among other things, trade discounts can improve cash flow, grow market share and improve customer loyalty. These discounts are also a great tool for inventory control, especially if a company runs into issues such as excess stock. At the same time, offering trade discounts in certa ... Read More

  October 23, 2017     

Mixing up mark-ups and margins?

Margin and mark-up have long since been a source of confusion and an improper understanding of the two can lead to some detrimental effects in terms of loss of income. So, delve in with us and learn about mark-ups and margins! What’s in a word Perhaps one of the keys to understanding these concepts is […] ... Read More

  October 20, 2017     

How Your Pricing Strategy Affects Customer Satisfaction

A business’ pricing strategy can be make or break when it comes to keeping your customers satisfied. Intuitively, higher prices presumably make customers less satisfied. However, in this article, we examine why pricing strategy is in fact much more complicated. The Problem With Cheap Prices Pricing sends an important message to customers. Researc ... Read More

  October 13, 2017     

How To Set Adequate Prices

Balancing Pricing with Ordering Costs Pricing strategy is an extremely important factor that contributes to a business’ overall revenue potential. Implementing prices that are considerably low may attract the customers interest, but it may also fail to offset behind-the-scenes expenses attracted by manufacturing costs, machinery costs and orderin ... Read More

  September 27, 2017     

Pricing It Right: Trade Discounts

Trade discounts refer to a pricing strategy or incentive that a supplier might offer to a consumer to encourage loyalty and increased purchasing. There are many advantages to trade discounts for both the consumer and the supplier. Advantages of trade discounts for the consumer Lowered business costs By taking advantage of trade discounts, especiall ... Read More

  September 2, 2017     

Pricing, Quality, Perception and Profits: A Complex Relationship

Despite the impetus of most companies being to make money – more, more money – there is a significant gain to be had from also focusing on customer satisfaction. We will help you understand the complex relationship between pricing, quality perception, real quality and customer satisfaction. Although it is complicated, it has enormous benefits o ... Read More

  August 31, 2017     

Trade Discounts: Are They Right For Your Business?

For many businesses, discounts are a common tool to attract business, clear out slow moving inventory and reward loyal customers. For a business that is mostly in the business of manufacturing inventory, rather than in the retail space, discounts are a key tool to tailor service and pricing to your customers’ specific needs. Let’s take [&hellip ... Read More

  August 29, 2017     

Should Your Business Consider Discount Pricing?

Choosing a pricing strategy is a difficult decision, but one that every business needs to make. Pricing strategy affects most aspects of a business, including its revenue, market share and profitability. As a general rule, low prices are considered to attract customers, making cut price or ‘discount’ pricing strategies increasingly popular. Sho ... Read More

  August 28, 2017     

Five Reasons to Consider Trade Discounts

A trade discount is a variable reduction on the wholesale list price. Manufacturers and wholesalers typically publish a single price list rather than notifying prices to each different customer. Offering a specific trade discount to a customer is a way of varying the sale price for that particular customer. Trade discounts can be an important [&hel ... Read More

  August 10, 2017     

Contrasting Trade and Cash Discounts

Most businesses will use discounts and price reductions at some point in their business journey. For a growing business, discounts can be a way to attract business, clear excess inventory, differentiate between market segments or encourage prompt payment of invoices. Discounts are often thought to be the exclusive preserve of retail businesses. In ... Read More

  August 9, 2017     

3 Factors of Pricing and Customer Perceptions

Settling on a pricing strategy is a key decision that small businesses have to make. The decision is an important one as the prices you set affect your sales, revenue, cashflow and business performance. Pricing also has a direct bearing on customer satisfaction, a crucially important consideration for a growing business. So, how do your […] ... Read More

  August 8, 2017     

Delving into Discount Pricing Strategy

Pricing strategy is fundamental part of a marketing with a strong focus on generating revenue and, ultimately, profit for the company. In a marketing campaign, a pricing strategy, such as discount pricing, can be considered the pursuit of identifying an optimum price for a specific product. What makes a successful pricing strategy? Numerous factors ... Read More

  August 7, 2017