If the products and services sold include aspects that are highly valued by customers and our prices have evolved below market rates, it means that it is feasible to raise marketing prices.
Ariel Banos, founder of Fijaciondeprecios.com, describes the signs that should be analyzed by businessmen at the moment of applying an increase in the prices of the products and services marketed.
Segmenting customers by prices they are willing to pay, showing the value of the product or service to charge higher prices and being careful when applying discounts are some of the recommendations from experts to avoid losing money.
Ariel Banos, founder of Fijaciondeprecios.com explains some of the myths that exist among business leaders when building a pricing strategy, and what could be the alternatives to not lose money.
In order to reach customers who, have great uncertainty at the time of purchase and to improve the unit margin of the products sold, flexibility must be offered in the cancellation conditions to increase the probability of successful sales, even at higher prices.
In difficult times, such as the current scenario generated by covid-19, the companies that win will be those that provide greater peace of mind to their customers, even if they sell their products at higher prices.
Charging tariffs consistent with the positioning of the brand and communicating its differentials with respect to the competition, is essential to stop competing for price and redirect the strategy according to the value of the product.
Ariel Baños, specialist in price management and founder of Fijaciondeprecios.com, explains three strategies to avoid competing only for the price factor, because in these struggles there are no winners and only attract the least loyal customers.
Convincing the sales team that the increase in the price of the product is necessary, and that they are able to convey the message to customers correctly, is essential when it comes to increasing prices when production costs rise.
Ariel Banos, specialist in price management and founder of Fijaciondeprecios.com, explains five strategies to increase product prices successfully, maintaining profitability and ensuring the viability of the company in the face of rising costs.
Making real sales projections, segmenting prices and designing savings options are some of the strategies that companies can use to protect their profitability in contexts of inflation and recession.
Ariel Baños, price management specialist and founder of Fijciondeprecios.com, details techniques that could help companies avoid negative effects on their finances, when faced with scenarios of rising prices and low dynamism in economic activity.
After registering a 4.5% year-on-year variation in the Consumer Price Index in May, in June the inflationary rhythm rose to 4.8%.
The most important inflation levels in June 2019 are as follows: 0.83% monthly inflation, 4.80% inflationary rhythm and 3.17% accumulated inflation, reported the National Statistics Institute.
The quintal of white corn has become 10% more expensive in the last two weeks in Guatemala, a rise that is explained by the decrease in supply that derives from last year's low harvests.
The Price Report of the Planning Directorate of the Ministry of Agriculture, Livestock and Food (Maga) states that between June 6 and 19, the price of a quintal of white corn went from $19.35 to $20.45.
In December, the FAO food price index fell 4% compared to the same month in 2017, explained by the decline in prices of meat, dairy products, vegetable oils and sugar.
From FAO's monthly report:
The FAO Food Price Index* (FFPI) averaged 161.7 points in December 2018, nearly unchanged from its November value as lower dairy and sugar quotations were largely offset by firmer cereal prices and somewhat higher prices of meat and oils.
In November, the consumer price index recorded a rise of 0.19%, explained by an increase in the divisions of food, recreation and health.
From a report by the National Statistical Institute of Guatemala (INE):
The Consumer Price Index for November 2014 stood at 118.19, registering a monthly variation of 0.19% and compared to November last year the variation was 3.38%.
The largest global coffee marketers may increase final prices to consumer in the medium term if the wholesale price keeps going up.
Projections are that the price of coffee will continue the trend seen in the last few months at least until the end of the year due to the impact of climate on crops in the leading coffee producing country in the world, Brazil .
The international price of the grain was quoted at $172.60 per quintal in New York Stock Exchange.
On Wednesday, the price of coffee rose again, resulting in an increase of $52.6 in just 19 days.
Miguel Pon, CEO of the Honduran Association of Coffee Exporters explained: "Even though there as rainfall in the coffee areas this weekend (in Brazil), a new forecast of a reduced amount of precipitation in the next few weeks encouraged speculative buying as evidenced by participation of funds. " '
The drought in Brazil, the country which exports almost half of the world's sugar, caused prices of the grain on the international market to rise to $444 a ton.
The drought in Brazil led to an increase in the international price of sugar. The South American country exports almost half of the grain in the world.
The lack of rain also caused an increase in the international price of coffee.
Increased demand from countries such as China has raised prices globally and creates opportunities for dairy exporters in the region.
By 2014 world supply may not be sufficient to meet demand and therefore prices will increase.
From an article by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
International prices for dairy products showed significant increases in the last months of 2013 and will remain at that level during 2014. Tim Hunt, analyst at Rabobank, indicates that it is due to an increase in purchases of large volumes of milk from China after a fall in local production.
It is estimated that in 2014 it will rise by another 14% due to growth in global demand, specifically generated in Asia.
An article by Bloomberg.com reports that "global cocoa stocks are on route to having the most prolonged deficit in more than 50 years as demand for chocolate soars in Asia."
Projections are that use of the grain will surpass production by about 70 thousand tons for 12 months from 1 October, and the deficit will remain until 2018. This is the longest period since records began in 1960, said the director of statistics from the International Cocoa Organization (ICCO) in London, Laurent Pipitone.