Essay about Pricing Products With New Upcoming Businesses

Essay about Pricing Products With New Upcoming Businesses

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The above listed article gives great advice and ideas when it comes to pricing products with new upcoming businesses. When it comes down to it, it’s a given that customers compare prices and want to get a good deal no matter how much they desire a product. Of course a business owner needs to make a profit, and as the article says, the pricing must be figured in such a way that profit margins are at a high enough level to stay in business and grow. The article pin points creative service businesses such as web designers and its agencies. It can be difficult to come up with the right price structure. Basically these service companies need to price out their worth, as the article says. Competition needs to be taken in consideration when deciding on the right price as well. If a business charges much higher than competition for similar services, there is a good chance customers won’t want to commit to doing business. The article says when starting a business, it’s a good idea to figure out the average costs of competitors that offer similar services and use that pricing structure. After some time, word gets around and sales pick up, this can be a good opportunity to gradually raise prices. It is also suggested if pricing is on the low end, that it will be more beneficial to raise prices and have fewer customers than many customers at too low of prices. It is still important to have a decent profit margin. The writer introduces a term of pricing called “buffet style” pricing. I’ll use my own example of “buffet style” pricing; I, like millions of others am a cell phone owner. I pay for multiple services but am charged for one “bundle” price. This “buffet style” pricing includes talk, unlimited text messages and data usage. I may not use...


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...le/topic. Social media is all around us and I find it astounding just how fast it has grown. The book gave an example of Dr. Pepper and how the business engages its consumers on social media such as Facebook by posting every day and monitors responses from users and checks the number of views or how many times it is shared. Just as the final step the article describes, which is to listen. The purpose is to show to the consumer the business shows it cares and is staying engaged. In today’s age it can be the most important rule to follow. Switching gears on the management side is public relations. One of the criteria mentioned is also to “listen to the public” and “Inform people you’re responsive to their needs”. The books gives plenty of suggestions, which first and foremost is to keep the public informed about any changes and to understand its consumers expectations.

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