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.
Dairy producers in Nicaragua are facing a scenario of falling prices, a situation resulting from the oversupply of this type of food reported in the local market.
Executives of the National Livestock Commission of Nicaragua (Conagan) report that with the onset of winter, the country's trading partners are reducing dairy purchases to protect local production.
Between December 2020 and May 2021, the average cost of airline tickets in Costa Rica increased 18%, a variation that is explained by the increase in fuel prices and the depreciation of the local currency.
One of the sectors with the highest contribution to the variation of the Consumer Price Index (CPI) in May was Transportation. According to the National Institute of Statistics and Census (INEC), gasoline, airline tickets and tourist packages abroad were among the main items with the greatest positive effect on the price level.
Generating a trusting conversation with clients and identifying and presenting your own success stories is of utmost importance so that at the quotation stage a price is defined based on the value provided by the products and services.
According to Ariel Banos, founder of Fijaciondeprecios.com, exploring the method of defining prices based on the value for the client is a recommendable resource for those who hesitate about how much to charge their clients.
Deploying all the analysis capacity to identify and value the differentials of the proposals, so that the customer is aware of the additional value of the products or services they will buy, is key to sell at higher prices.
Ariel Baños, founder of Fijaciondeprecios.com, exemplifies one of the cases in which strategies to sell at higher prices can be applied and explains the factors that influence this type of scenarios.
In Costa Rica, since July 2020 the producer price index for the manufacturing sector started to report increases, a situation that could lead to a rise in sales prices and simultaneously to a fall in the quantity of products traded.
Between December 2019 and June 2020, the producer price index for the manufacturing sector (IPP-MAN) reported negative year-on-year variations. This phenomenon was reported in the context of the onset of the health crisis caused by the Covid-19 outbreak.
The oversupply of office space and changes in the dynamics and ways of working of companies have led the office rental market to a corrective or adjustment phase, which is mainly evidenced by the downward pressure on rental prices.
At the beginning of 2021, CentralAmericaData expected that in the coming years, 4 out of 5 companies will bet on hybrid work modalities, which include face-to-face and remote activities. This phenomenon will force office supply to adjust to the new market conditions.
Due to shortages in raw materials and bottlenecks in the production of inputs demanded by the sector, businessmen in El Salvador expect that in the coming weeks the prices of plastic products will reflect increases.
"The cost determines my selling price" and "let's lower prices to win customers and then start raising them" are some of the phrases that should be avoided when designing a pricing strategy.
Ariel Banos, founder of Fijaciondeprecios.com, has identified five phrases that are dangerous and that companies should avoid applying when designing their price management strategy.
For the period from February to April 2021, Deocsa and Deorsa users will be subject to a 1.5% increase in the price of electricity, and for Eegsa customers the increase will be 0.4%.
According to the National Electric Energy Commission, in general terms, it is possible to indicate that for the following quarter the tariffs will show slight variations derived from the regular behavior of macroeconomic variables that have a direct incidence on the costs transferred to tariffs.
Given the announcements made by butchers about the possible increase in the price of beef, the Diaco announces that it has begun operations to prevent speculation.
The Direccion de Atención y Asistencia al Consumidor (Diaco), an agency of the Ministry of Economy, informed that it has begun operations to verify red meat prices nationwide, warning that it will not tolerate any abuse and price speculation.
Taking advantage of shortages to sell at high prices and visualizing the benefits to companies of strategies that demonstrate social empathy in difficult times are some of the lessons learned during 2020, which was highlighted by the health and economic crisis.
The spread of covid-19 suddenly transformed the global business landscape. Ariel Banos, founder of Fijaciondeprecios.com, has identified five lessons that companies learned in terms of price management, in this context of changing commercial reality.
Since 2018, the price of the banana box that Costa Rican producers sell to the German supermarket chain ALDI is falling, there is concern that other European chains will begin to negotiate lower prices.
Representatives of the National Banana Corporation of Costa Rica (Corbana) explained that in 2018 the 18.14 kilo banana box sold to ALDI was quoted at 13.55 Euros. However, in 2019 and 2020 the amount paid for the fruit was reduced, and by 2021 a price of 11.33 euros has been set, which is equivalent to a -16% variation with respect to what was charged in 2018.
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.
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