Here are my best tips regarding pricing. These are proven strategies you can use to beat out most competitors.
Do not Automatically Think Lower Price is Better
- Certainly lowering prices increase demand, but by doing so, you lose profitability and thus force other companies to lower their price as well. This triggers a price war.
No One Wins a Price War
- I have seen many industries where all companies attempt to lower their price, to the point that no one makes money.
- When this happens, the correction to this problem means the entire industry must raise their price, and unless the professor enforces that, it’s not going to happen.
Or Create a Niche
- If you are in a price war, not every company is going to have the same strategy, and therefore you to figure out a compelling strategy for your cameras by creating a niche. Experiment with camera builds, prices, promotions, and compare net profits when you match assembly.