"• Level 1: Commodities you typically buy and resell. These commodity items are easy to find elsewhere, and brand carries almost no value. Your gross margin (GM)—selling price, minus the cost of goods sold, divided by selling price—percentage for this level of products will end up below your company’s average GM percentage. It is best to think in terms of gross margin percentage rather than markup percentage because gross margin translates much more directly to the income statement. Ensure pricing is competitive with the street price (not necessarily the lowest, but competitive). Pricing these products too high might make buyers question all of your pricing.Trechos retirados de "Is your pricing strategy hurting your business?"
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• Level 2: You make, buy, or private-label these products. Your offerings have little or no exclusive customer benefits; little or no competitive advantage; no intellectual property (IP) protection, such as trademarks or patents; and can be sourced elsewhere if the customer is willing to put in the time to research. Target the upper range of competitive pricing for these products or services.
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• Level 3: You make or private-label these products, or you buy them from a source that is hard to find. These products have some perceived benefits and competitive advantages, and they should have a price point slightly higher than competitors’.
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• Level 4: You are clearly the vendor of choice for these products, either through recommendation or by a directed-buy mandate. The products have strong, unique benefits and competitive advantages. They might have patent protection or be manufactured with an exclusive capability that few companies possess. These products might be available only from you. The value is high, so price these products with a higher GM percentage."
quinta-feira, dezembro 13, 2018
Basic Value Pricing Model
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