Selecting products with limited sales potential because of price, defining the group of clients that will be reached by the promotion and quantifying the profits that the company will receive after offering discounts are factors that must be evaluated when applying strategies of this type.
In order to avoid carrying out promotions in an intuitive way, without an integral evaluation of the action, both in terms of costs and benefits, Ariel Banos, founder of Fijaciondeprecios.com, proposes seven steps to correctly define a Profitable Promotion.
With the change in the configuration of the markets and businesses, companies must think clearly, adapt to the new rules of the game and avoid, as far as possible, immediately implementing the policy of low prices.
The economic crisis resulting from the outbreak of covid-19 has changed the rules of the game in the markets at a global level. Some companies, in their attempt to stay in business, have opted to lower their prices, even to levels where they could incur losses.
"If we overcome the mental barrier of commoditization, identifying and communicating those added values going beyond our basic proposal, we will have the opportunity to take our profitability to another level."
Ariel Banos, founder of Fijaciondeprecios.com explains that when a proposal is a commodity, in other words, it lacks differentiation with respect to others offered in the market, the only alternative is to align itself with the prices charged by competitors. There are no magic solutions.
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.
Avoiding hurried discounts, managing price increases according to costs and improving cash flow are some of the strategies that companies can resort to protect their profitability in contexts of inflation and recession.
Ariel Baños, a price management specialist and founder of Fijciondeprecios.com, explains four strategies for maintaining profitability when companies face scenarios of rising prices and low dynamism in economic activity.
Discount promotions expressed in percentage terms rather than absolute values are typically those that consumers prefer when analyzing available purchase options.
Ariel Baños, a price management specialist and founder of Fijaciondeprecios.com, explains how consumers value discounts more, depending on how they are expressed in promotions at sales points and in advertising spaces.
Applying segmentation techniques, making comparisons with the prices of other products, and applying discounts to customers who have eco-friendly practices are some of the strategies that can help maximize the sales profitability.
Ariel Baños, a price management specialist and founder of Fijciondeprecicios.com, explains how simple techniques completely applicable to any business can be turned into intelligent and creative pricing strategies to maximize profitability.
Because not all customers value the same proposal equally or are willing to pay for perceived benefits, sometimes the same product can have multiple ideal margins.
Ariel Baños, price management specialist and founder of Fijaciondeprecios.com, explains how there are myths about the "ideal margin" and what are the ideas to overcome these misperceptions.
Identifying a segment that values the differentials of the product or service and charging a price aligned with the company's strategy are essential to avoid competing with the lowest prices in the market.
Ariel Baños, specialist in price management and founder of Fijaciondeprecios.com, explains how through the implementation of an appropriate strategy, it is possible to compete in a market where there are suppliers who charge derisory prices.
Gender equality also has its space for discussion in relation to companies' pricing strategies.
Ariel Baños, price management specialist and founder of Fijciondeprecios.com, explains the impact of price differences by gender and recommendations to avoid polemics between companies and consumers.
It has been called the pink tax on the surcharge paid by women on certain products and services because of their gender.
The right choice of the marketing system and the partners who will sell the product is key to compete profitably with other options with lower prices.
Ariel Baños, price management specialist and founder of Fijaciondeprecicios.com, explains how through proper marketing, it is possible to compete against the prices of companies manufacturing their products on a large scale and at lower cost, such as those made in China.
The carrot strategy is to implement the right incentives for everyone to be committed to the same goal: the culture of profitability.
Ariel Baños, price management specialist and founder of Fijciondeprecios.com, explains how through the "carrot strategy", companies can move from the "culture of volume" to the "culture of profitability."
The carrot strategy is to implement the right incentives for everyone to be committed to the same goal: the "culture of profitability". It is not an easy path, since it can mean to say "no" to certain businesses contributing volume, but end up deteriorating the final results.
Estimating how much customers would pay if they bought from a competitor and defining how the product offered differs from others are some of the strategies used to help increase sales profitability.
Ariel Banos, specialist in price management and founder of Fijaciondeprecios.com, explains how through the "umbrella strategy" companies can stop using discounts as the only selling tool.
Controlling and professionally establishing the price of what is sold is essential for a company in order to be successful and obtain an adequate return.
Ariel Baños, founding economist of Fijaciondeprecios.com, presents 10 essential actions to ensure proper management of the prices of what a company sells.
1 - I will use the cost only to know the floor price and profitability.
Planning adjustments to avoid the loss of profitability and redefining discount policies are some of the goals that companies should consider when deciding on their pricing strategy for the new year.
The last weeks of December are generally a good time to evaluate the results of the strategy implemented throughout the year that is ending, and to reevaluate plans for next year.Ariel Baños, a specialist in price management, recommends that companies commit to five principles in order to get the information needed to decide on plans for next year.