| The law of demand states that the quantity of a | | | | competitors from entering the market with similar |
| product demanded decreases when the price of that | | | | products.Skimming pricing strategies involves setting |
| product increases. So when the BMW manufacturer | | | | the price well above the total unit cost and to |
| raised the price of their cars over a two-year period, | | | | promote the product heavily in order to appeal to |
| sales should have dropped off. Right?Not exactly. | | | | the segment of the market that is not sensitive to |
| This strategy helped incredibly for BMW sales in | | | | price. Such a pricing tactic often reinforces the |
| South Africa. To keep sales from slipping BMW | | | | unique, prestigious image of a shop and projects a |
| actually raised the prices in an effort to take on a | | | | quality picture of the |
| more upmarket image.A growing number of | | | | product.Sliding-down-the-demand-curve pricing |
| middle-price brands are under attack from competing | | | | strategies involves the entrepreneur introducing a |
| products in both the luxury and the discount markets. | | | | product at a high price till technological advancements |
| Customers are moving away from middle-of-the road | | | | enable the firm to lower its costs and to reduce the |
| products in favour of premium products or those | | | | products price sooner than its competitors.Other |
| offering the lowest prices. The inexpensive | | | | pricing strategies involve.ODD PRICING, $12,95 |
| supermarket label brands are thriving as is the | | | | instead of $13,00PRICE LINING, each category of |
| exclusive ranged products, leaving the average (price | | | | merchandise contains items that are similar in |
| and product)to fall by the wayside due to a shift in | | | | appearance, quality, cost and performance. Music |
| consumer buying habits. These days, choosing the | | | | shops generally use this technique by placing CD's etc |
| right price is even more important than it was in the | | | | in the same price line.LEADER PRICING, products are |
| past. Although much has been written on the science | | | | marked down from what consumers are accustomed |
| of pricing products, the fact is that in many cases, | | | | to paying in an attempt to attract more buyers, they |
| pricing remains an art. Of course, production cost | | | | earn smaller profits in the hope to attract more |
| figures influence a products price, but many other | | | | customers.OPPORTUNISTIC PRICING, when products |
| less tangible, less measurable factors also influence a | | | | or services are in short supply customers are willing |
| pricing decision. Lower prices are preferred for most | | | | to pay more.DISCOUNTS, products are marked |
| products, but there are exceptions. The higher you | | | | down to move stale, outdated, damaged or slow |
| price certain products like Mercedes Benz, the more | | | | moving products.Pricing, is it an art or a science?. Well |
| desirable they become.Most customers associate high | | | | the only way to really know is to study and |
| quality with high prices. Image plays an important role | | | | understand your products and your market segment. |
| in setting prices. For example, the ingredients of a | | | | The right price today may be completely |
| bottle of perfume retailing for $200 may only cost | | | | inappropriate tomorrow because of changing market |
| $50, the the $200 price tag creates an air of | | | | conditions where you will find Global solutions and |
| mystique and sophistication. "Women are buying | | | | ideas.Turtle Herb Estate Holdings consists of 3 |
| atmosphere, hope, and the feeling of something | | | | forward thinking entrepreneurs with expertise in |
| special," says a major perfume manufacturer. | | | | marketing & DTP advertising, farming culinary and |
| Customers consider more than price alone when | | | | medicinal herbs, web design and online marketing, |
| making decisions. Quality, reliability, service support, | | | | horse breeding (sport horses),animal health products, |
| ease of operation and other intangibles rank high on | | | | import and export, engineering and industrial design |
| customers' list of buying criteria.Penetration pricing | | | | (water solutions), arts and crafts. With a combined |
| strategies involves gaining quick acceptance and | | | | wealth of 80 years experience in various lines of |
| extensive distribution in the market. The | | | | business, we embrace a holistic approach to |
| entrepreneur introduces the product at a low price. | | | | entrepreneurship. |
| The low profit margins may discourage other | | | | |