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.
Fifteen months after the beginning of the health and economic crisis, Guatemala, Honduras and Nicaragua are the economies in the region with the highest inflation rates, a behavior that was influenced by increases in fuel and transportation costs.
In the second quarter of 2020, a period in which the countries of the region were going through a severe economic crisis caused by the Covid-19 outbreak, inflation levels were low and in some economies negative variations were reported.
During 2020, it is estimated that the average price of a ton of steel increased 19%, a rise that impacts the construction industry and is explained by the increase in logistics costs and the suspension of the extraction of the material due to the outbreak of covid-19.
Central American businessmen report that during last year, which was marked by the sanitary and economic crisis, the average price per ton of steel increased by $130, going from $670 to $800.
Due to weak competition in the local market, the prices of goods and services in the basic basket are significantly higher in Costa Rica than in nearby countries.
A report by the Organization for Economic Cooperation and Development (OECD), called the "Economic Study on Costa Rica", concludes that consumers in the country pay higher prices for milk, rice, vehicles and Internet services.
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.
During February in the country the CPI reported -0.3% year-on-year variation, which is partly explained by the behavior of the prices of the transport category.
The groups that showed decreases in the National Urban CPI for February compared to January 2020 were: Transportation with 1.3%, Food and non-alcoholic beverages with 0.8%, Recreation and culture with 0.4%, Communications with 0.3%, Alcoholic beverages and tobacco, clothing and footwear, and Health all with 0.1%, reported the General Comptroller of the Republic.
At the end of last year, the Consumer Price Index in the country reported a 6.1% year-on-year variation, an inflationary rhythm that is higher than the 3.9% registered in December 2018.
After not publishing for several months the information on the behavior of prices in the country, the Central Bank of Nicaragua (BCN) decided to report that in December 2019 the annual inflation was 6.1%.
As a result of the tax reform implemented in February 2019, at the beginning of 2020 the prices of beverages increased, mainly soft drinks sold in plastic containers.
In February of last year, the Ortega regime approved the reform of the Tax Agreement Law, which consisted of increasing income tax from 1% to 2% for medium sized companies with higher incomes, and from 1% to 3% for large taxpayers.
Arguing that there are justified reasons to increase the price of pile of rice, in Costa Rica the Alvarado administration authorized a 1.9% increase in the final price to the consumer.
With the increase decreed by the Ministry of Economy, Industry and Commerce (MEIC), the price per kilo will rise from $1.06 to $1.08, for the variety with 20% broken grain, also known as 80/20.
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.
In September, the Consumer Price Index increased 2% year-on-year, up from 1.7% in August 2019.
The Central Bank of the Dominican Republic (BCRD) reported that the consumer price index (CPI) registered a 0.38 % variation in September 2019 with respect to August, so that accumulated inflation in the January-September period stood at 2.38%.
During August, the inflationary rhythm was reduced for the third consecutive month, falling to 4.29%, which is explained by the behavior of the prices of Food and non-alcoholic beverages.
The monthly variation of the Consumer Price Index (CPI) was 0.06% in August 2019, lower than that observed in the same month of the previous year (0.44%), a result mainly because of the reduction in the prices of some foodstuffs, which was compensated by increases in the rent of housing, some medicines and health services, informed the Central Bank of Honduras (BCH).
Businessmen in Panama report that before the country began to scarce produce, the 50-pound sack cost between $25 and $35, but is currently priced at $66.