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. For the whole of 2018, the FFPI averaged 168.4 points, down 3.5 percent from 2017 and almost 27 percent below the highest level of 230 points reached in 2011. Sugar values dropped the most in 2018, with also vegetable oil, meat and dairy prices registering year-on-year decreases. However, international prices of all major cereals rose in 2018.
The end of the year is a good moment to take stock of a company's pricing strategy and assess possible changes.
Ariel Baños, specialist inpricemanagement, explains the main steps to follow in order to successfully define the most appropriate pricing strategy for every organization.
In addition to revolutionizing the concept of transport in cities, Uber is also an example of how trends in price management are changing within companies.
The processes and methods followed by businesses to determine the sales prices of their goods and services are changing as fast as the tastes and preferences of consumers.
With the network of all networks being the main source of information on prices, "companies should not focus on destructive competition, but communicate the differential value of their proposal."
Internet: Excellent for Communicating Prices, Lousy for Communicating Value
Price of a gallon of regular gasoline: Panama $2.34, El Salvador $2.48, Guatemala $2.44, Nicaragua and Honduras, $3.17 and Costa Rica, $3.77.
From a statement issued by the Ministry of Economy of El Salvador:
New variations with a downward trend which occurred in this week, are due to the significant drop in prices of derivatives and oil, which are caused by the results of the latest OPEC meeting, where member countries reached an agreement on a maximum ceiling for oil production and maintaining the overabundance of supply, coupled with the fact that Iran will join the market next year, once the West has removed the sanctions that it imposed sanctions over its nuclear program. These factors lead to oversupply causing a decline in reference prices.
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