Most companies assess past strategies as well as analyze how well each did during the price strategy planning processes. Then, they plan the prices for the upcoming year, anticipating a tremendous impact on the bottom line. Simple calculations show that if you increase the price with 1% it can result in more than 10% increase in the profit. However, usually, something goes wrong. For instance, customers can reject the pricing and take their business elsewhere. To prevent from the common roadblocks and other mistakes, read the 10 steps to building a profitable pricing strategy described in the infographic below.
Simple in nature this infographic focus on 10 easy to remember but sometimes hard to implement steps to profitable pricing. It is advisable to plan price changes at least six months in advance. Furthermore, focus on value and excellent customer service. Always be realistic and control the conversation with customers. Minimize the margin leaks and measure your pricing strategies on a regular basis.
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