In a previous article, we argued that you shouldn’t be looking to your competitors when setting your price. While this is true, knowing how your product or service is positioned in the mind of your customer will help you understand how you stand out from your competitors. And if you find your product is positioned pretty similar to a competitor, you can use price positioning as a tool to build a strong USP (Unique Selling Proposition) by setting a new price that is relatively higher or lower than your competitors’.
The wording of your marketing message can be incredibly important for your pricing. Here in the US, owners or executives in many small firms have retained companies that oversee their personal pension plans. There are many of these companies, and together they consist of an industry that is called Third Party Administrators, or TPAs. Insurance companies themselves are not allowed to oversee their own plans, but an individual can, of course, oversee, or manage, his or her own plan. But since doing so requires substantial expertise, using a TPA is often a better choice.
Google’s latest attempt to conquer the smartphone market, the Google Pixel is reporting declining sales in India (the world’s second largest smartphone market) due to its heavy price tag. Consequently, many are now anticipating a price correction from Google to regain momentum. However, the Google Pixel might just be doing exactly what Google wants it to.
We have become conditioned to believe that whenever we buy more than one of anything we get a lower price per unit. It makes sense for the seller to increase the volume of sales to turn inventory quicker or decrease the manufacturing cost. It makes sense for the buyer as the price goes down per unit. But it does not alway have to be so.