Last modified:Thursday 31 October 2019
Don't forget to develop certain "details" when setting your pricing policy.
Consider your price change strategies.
What are you planning to do...?
- Discounts (special terms during events, temporary actions, discounts for high-volume purchases, seasonal discounts, functional discounts (sales), discount against exchange, etc.).
- Payment methods: cash payment or credit card payment, prepayment, and purchases on credit.
When setting your pricing policy, don't forget costs associated with unsold items and delivery costs. Who will assume payment for the latter? Do you plan to apply a uniform cost, or will the price depend on the zone in which the delivery will be made?
Possible price changes
Do you plan to reduce your prices during periods of crisis or overproduction? Do you plan to sell cheaper ranges of the same products? A price reduction may also be a purely strategic choice and will allow you to acquire an additional market share. The fact that the competition also reduces their prices may also force you to follow the trend.
When are you going to implement a price increase? Only to cover an increase in your costs? Are you also planning to increase your prices when you notice an increase in demand? What is contractual room for manoeuvre when it comes to indexing or rising prices in the raw materials market?