Price – One of the Elements of a Well-Conceived Marketing Matrix
The second element of your marketing strategy is Price. What do you charge for your Product? How did you arrive at this Price? Is your Price competitive with alternative products in the marketplace? How elastic is the Price of your Product? In other words, how much room do you have to increase or decrease your Price without impacting your ability to sell?
In addition to how much you charge, pay close attention to how you receive payment. Do you accept credit card payments? Is this important to your potential customers? What about personal cheques? If you ship product, do you require payment in advance, or will you ship and bill later? Do you levy shipping charges? What about handling charges? Do you treat your shipping department as a profit center?
All of these questions must be carefully considered within the context of the marketplace. Remember, the prime determinant of your price is your competition. Revisit the competitive analysis you have prepared earlier. Examine your competitors’ pricing models. Be sure yours is competitive.