Implementation strategies sale price can also be used to anticipate the competition, for example by setting prices below market prices in order to gain market share.
For example: Product motorcycle motors China set the price below the price of Japanese-made motorcycle in order to gain market share.
If the market share already achieved and mastered the loyalty of consumers will switch to the motor China. And there is also a set price above the market price is high.
This is done for new products with discoveries of new engineering techniques.
Initially set a high price when the market already dependent on the discovery of the new product price is reduced step by step in accordance with the period of product life.
Maybe these products are already saturated in the market.
Companies that have high innovation products usually have a patent and would choose one of the strategies of the two following strategies.
1) Pricing Strategies Skimming Skimming pricing strategy is usually applied to new findings products launched into the market at the moment.
At the time of its introduction into the market, initially set a high price, in order to cover the investment costs (research and development) is high. Furthermore, prices are gradually reduced in order to compete.
Of course, the purpose of this strategy is to maximize short-term profits in order to cover investment costs. Price skimming can only be done on a certain condition, namely:
(A) the quality of the product and the image must support the price is expensive, and the number of buyers who want the product at the appropriate price.
(B) Cost of production in small quantities is not too high, so that buyers take advantage of delaying the implementation of expensive.
(C) Competitors will not be able to enter the market easily and sell their products at relatively low prices.
If the above requirements are not met, then the application of price skimming is not possible, it will even cause harm.
2) Penetration Pricing Strategies Penetration pricing strategy is the determination of the price of a standard product.
This method is done by setting the initial price of a low initial price, in order to be widely accepted by the market.
One goal is to establish methods to obtain customer loyalty. Low pricing is preferred by the market due to a number of conditions, including:
* The market should be very sensitive to price, so low prices could open a wider market.
* The cost of production and distribution must fall as sales volume increases.
* The low price should help the competition.
3) Price Adjustment Strategies Price shall be adjusted by the variation of the consumer, situations, and conditions.
Have you ever bought goods with discounted or given a discount? Or perhaps you've received a promotional price which is cheaper?
Or maybe you've shopped an item of the same type at a place with a different price somewhere else? In this price adjustment, there are several strategies, which include:
* Discount Pricing and Discounts
* Psychological Pricing
* Promotional Pricing. Discount pricing is done by discounting of the price of certain sales.
For example, since the initial purchase discounted by 20%.
Or because the discounted cash 10% of the average selling price.
Or because buying a lot, given the 15% discount. It may be a certain percentage could be in the form of a certain amount.
Determination Psychological done to attract consumers, such as price fixing tools Rp 399,999, - more interesting than Rp 400,000, -. Two pairs of socks Price Rp 10.000, - more interesting than the price of a pair of socks Rp 5.000, -.
Promotional pricing is done by setting a lower price than that stated in the price list.
This is done for a certain time only. For example, the feast outfitter providing discounted rates with varying discounts.
Supermarket set a low price for certain products, with consumer expectations also buy other products with a relatively high or elevated.
Company car and housing offers payment with low interest rates, longer warranty, or free care to reduce consumer prices.
