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.
Offering low prices, promotions and discounts similar to those found in U.S. stores, is part of the bet that AR Retail seeks to attract customers, especially millennial, in the Costa Rican clothing market.
At the beginning of 2019, AR Retail, a company dedicated to the marketing of the brands GAP, Banana Republic and Old Navy, reported that it plans to invest $6.2 million over the next few years in the start-up of nine stores in the Greater Metropolitan Area.
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.
The price control policy of the basic basket that has been implemented in Panama for some years is discouraging the local production of goods, since it is not profitable for companies to produce at a price lower than the balance price.
The measure to regulate the maximum retail prices of 22 products of the basic basket, began in 2014 and its validity has been renewed each semester, with its last extension in January of this year.
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.
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."
Properly establishing the criteria for the application of discounts or special conditions helps to wisely manage price reductions without compromising the company's profitability.
Price management specialist and Fijciondeprecios.com founder, Ariel Baños, explains how through the "strainer strategy" discounts to customers can be managed intelligently.
The measure initially defined as transitory, became permanent in Panama, since the beginning of the Varela administration has been extended nine times, leaving negative balances in some sectors.
Juan Carlos Varela will close his administration with a new extension of the controversial measure that regulates the prices of 22 products of the basic basket, affecting several sectors, including meat producers, who report economic losses.
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 salesprofitability.
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.
Only a few companies are aware of the true impact of a proper strategy and price management on the profitability of the organization.
Ariel Baños, pricing specialist and founder of Fijaciondeprecios.com, explains why it is critical for organizations to control the variable with the most impact on their results, and details the five reasons for implementing a pricing area in companies:
The search for the ideal margin is an aim that keeps a lot of business owners up late at night, but this kind of reasoning does not always help them be more profitable.
In general, those who ask themselves what price they should set for their product, start from an incorrect premise: using the cost as a starting point.
To what extent can a higher price be considered an indicator of greater value for the customer?
Ariel Baños, pricingexpert and founder of Fijaciondeprecios.com, analyzes two interesting cases to try to explain what factors are most important for customers when assigning value to a product or service.
When sales fall, changing prices and holding discounts and promotions is usually the first step companies take, but it is often done without considering the possible consequences.
In his article on pricing strategies in times of crisis, the expert in price management, Ariel Baños, explains the reasons why lowering prices is not always the best solution in a scenario of slowing sales.
The challenge in defining the most appropriate pricing system for each company is to identify what value the products and services sold have for each customer.
The founder of Fijaciondeprecios.com, Ariel Baños, explains the key elements for determining how companies should establish prices for their products and services.Baños notes, "...The price should be related to the value for each client ", but the complexity is in being clear about that value, since" ...When we buy something in general we are not completely sure of the results we will get when using it."
Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand. The OHNE brand has 8 product lines: square bread, sweet...
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