6 Common Strategies in Making Pricing Decisions
Ever wondered what goes on in an analytics company and their role in the manufacturing world? Analytics companies help manufacturers increase their revenue performance by coming up and modeling practical pricing strategies.
Below are the common types of conventional pricing strategies that Benchmark Minerals and most analytics companies discuss with manufacturers, cathode and anode supply chains, and other businesses to come up with the price of cathodes:
This method comes up with a price using set formulas and rules. This system minimizes pricing maintenance and implements any changes in pricing regardless of the scale.
This is where an analytics company predicts the behavior of a consumer at the market level, while focusing on making the product available and at a certain price. The principal objective of this strategy is to sell the product to particular consumers and at an optimized cost.
This concept sets prices of items depending on the present market conditions. The prices change according to the demand, supply, weather, and target market.
Also known as price intelligence, price monitoring seeks to track the prices from competitors to understand the position of the retailers in markets.
Competitive Price Elasticity
In determining the price using this strategy, the analytics company measures the effect on your sales after your competitor changes the cost of their products and further helps you to come up with your price.
This pricing strategy seeks to understand the pricing position of your brand in a particular market relative to that of your competitor. Retailers get to understand the price they should set for their products and the effect of future price changes.
Price optimization uses real-time data, retailer information and demand curves to know what customers are willing to spend on specific products. The understanding of these factors helps cathode and anode manufacturers and their supply chains to come up with a pricing strategy for setting the price for their products.