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Prices should differ across different countries, but companies must not only reap the benefits (The Good) but also manage the costs (The Bad) and avoid the pitfalls (The Ugly)
Prices are almost never the same in international markets. They vary due to taxes, cost structures, local market needs, currency exchange rates, tariffs, differences in competitive situations and a myriad of other reasons. They even vary because this is the way it has always been. If looking at different industries, consumer products (CPG/FMCG) have more than 100% difference in prices, with even regional differences in e.g. the European Union of up to 50% for the same product. Car manufacturers are well-known for their price differences and even relatively global products such as computer software has had a number of bad PR cases where e.g. Australians would pay twice as much for Adobe software as US customers.
But international price differences are more good than bad. Here is why.
On the 29th of April, we will be hosting a webinar on Successful Price Increases using Market Insights.
Topics: PriceBeam partners
Being a founder or senior manager in a start-up involves a very diverse set of projects, tasks and challenges. Anything from big strategic thinking over sales, marketing, HR, technology, admin and myriads of other things. So it can sometimes be easy to overlook pricing, even if price is one of the most important decision areas to focus on as a start-up or scale-up. Here are 10 reasons why:
PriceBeam will be hosting the Pricing Innovation - Setting the Right Price for New Products or Services event on the 24th of April 2019 in London, England. This event will be looking at insights into pricing innovation and the pricing of new products and services.
Topics: Events & Presentations
Price segmentation involves charging different prices to different customers for a product or service that is the same or similar. It is a strategy that is very common as customers will face different prices when going to cinemas or when using vouchers in different shops. The airline industry uses price segmentation effectively all the time as customers rarely pay the same price for a particular seat.
Imagine a product costs £25, some customers may be willing to pay more while some others may find that price to be too much. Firms lose money from customers who won't purchase the product at that price as well as losing money from customers who are willing to pay more. If that company were to segment that price into three categories, £20, £25, and £30, then it can appeal to customers looking for a cheaper product as well as extracting that extra revenue from the customer segment that were willing to pay more for their product.
Communicating the price is an activity that requires a pricing strategy as the pricing strategy chosen is essential to how much profit a company gets. Pricing strategies are important in price communication because pricing strategies require customers to know about things such as buyer psychology. Businesses need to have some sort of guidance on how to communicate price to their clients and or customers on a frequent basis. Price tends to be communicated poorly because businesses understand customers' desire for clarity and certainty as a way of demanding a low price for a particular product or service. Here are seven tips for businesses so that they can improve their price communication methods.
Topics: PriceBeam partners