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The change agent: Stick with the pricing if you are sure about it | Gulf News

The Business Challenge
If your products are of premium quality, then you most likely have a pricing strategy to support that. Selling against low-priced competitors is a challenge for almost any industry. There will always be a competitor who is in desperate need of a sale and will sell at a lower price than yours.

The other issue is that this region has an unhealthy focus on price as if that was the only criteria. You’ll have heard the expression “buy cheap, buy twice”.

But how can you compete with such lower priced alternatives? How can you achieve a fair price with a fair margin in a market when price alone seems to be the main driver of a purchase decision?

Change Tips

  • Be clear on your market positioning. After studying the marketplace, decide on a pricing strategy that will enable you to differentiate and make a profit.
  • Know your price architecture. Learn from great retailers that have a “good, better, best” approach to product segmentation. That simply means that in most categories, they will have products at entry price level, mid-level and higher price. For example, Carrefour has “good” fry-pans as an entry price. They have a “better” collection at mid-price and a “best” premium selection. This wider collection enables them to cast to a wider net of customers. If you too can do this, it gives your sales team a structured approach for upselling and handling price objections.
  • Know the USP (unique selling proposition) of all of your products. If your products are premium, be clear on what makes them so. If a customer can’t see the added value of your product, they will assume that you’re expensive. And that just adds to the risk of losing a sale and reputational damage for the business.
  • Communicate the pricing strategy to your sales people. Don’t make assumptions that they know it. Ensure the team understand the context and market positioning of your product edit and pricing policy. Explain the profile of the target customer to them. Dispel any risk that they might have their own inbuilt unconscious bias to price.
  • Then train them on how to sell your products. Show them how to confidently present with conviction, regardless of your pricing policy.

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The change agent: Stick with the pricing if you are sure about it.

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