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It might be challenging to set prices for your goods and services. If you set your prices too high, you will pass up profitable sales. If you set them too low, you'll lose out on potential earnings. Let’s understand more about Pricing Strategies further in this article.
Thank goodness, pricing doesn't have to be a compromise or a guess. Numerous pricing models and techniques exist that can aid in your understanding of how to choose the appropriate prices for your target market and financial objectives.
What is a Pricing Strategy?
A pricing strategy is a plan or technique for choosing the most competitive price for a good or service. It assists you in setting prices while taking customer and market demand into account in order to maximize profits and shareholder value.
Numerous aspects of your organization, including revenue targets, marketing goals, target market, brand positioning, and product features are taken into account by pricing strategies. Additionally, they are impacted by outside variables like market and economic changes, competitive prices, and consumer demand.
The importance of nailing your pricing strategy
By fostering customer trust and achieving your business objectives, a good pricing strategy strengthens your position. Let's compare and contrast the messages that a strong pricing plan conveys versus a weaker one.
As you raise your price (moving left to right), your profitability goes up—to a point. It’s at the point where you’ve raised your price by too much that your profitability goes down.
Don’t worry! SlideTeam is at the rescue, whether you’re a business beginner or a pricing pro, the tactics and strategies in this ready-to-use 100% editable PowerPoint template will get you comfortable with pricing your products.
Let’s discuss the major slides of this Presentation deck:
Slide 1: What is pricing and its strategies?
This template covers the meaning of pricing and its strategies, along with the difference between both concepts.
To start with the PowerPoint Presentation, it is always necessary to give an overview of the topic to the team to make the concept more penetrable.
So, highlight the meaning of both pricing and pricing strategy along with highlighting the major difference between both.
Slide 2: Seven popular pricing strategies
This template covers the 7 pricing strategies which can be implemented by the business, such as cost-plus, penetration, skimming, competition, value-based, psychological, and premium.
Now we have already discussed what is pricing strategy, list down the major pricing strategy in this slide. All the further slides will be the detailed version of this slide.
This slide will make the members aware of different strategies that you can incorporate to excel your pricing strategy to gain immense assistance.
Slide 3: Strategy 1: Cost plus pricing
This template covers the first strategy for price optimization i.e cost plus markup pricing along with the advantages and disadvantages of choosing this strategy.
Cost-plus pricing is a method of determining a product's selling price by adding a specific fixed percentage (a "markup") to the product's unit cost. In essence, the markup % is a strategy for achieving a specific desired rate of return.
Further, highlight the benefits & drawbacks of the strategy to let the team decide whether it would be suitable considering the company’s dynamic.
Slide 4: Strategy 2: Penetration Pricing
This slide covers the second strategy for penetration pricing i.e maximum unit sales or loss-leader pricing along with the advantages and disadvantages of choosing this strategy.
The penetration pricing strategy involves offering a new product or service at a low initial price to gain customers' attention.
Further, explain this strategy to members with the help of a graph by taking some random examples to make the concise and easy to understand. Also, highlight the benefits and drawbacks of the strategy to make an informed decision.
Slide 5: Strategy 3: Skimming pricing
Price skimming is a pricing strategy that sets new product prices high and subsequently lowers them as competitors enter the market. Skim pricing is the opposite of penetration pricing.
Showing the skimming price strategy in the form of a graph along with the benefits and drawbacks.
Slide 6: Strategy 4: Competition based pricing
This template covers the fourth strategy for competitive-based pricing along with the advantages and disadvantages of choosing this strategy.
Competitive Based Pricing (or Competition Based Pricing) is a pricing model where your price points are heavily influenced by those of your competitors.
Further, highlight the steps needed to build a competitive strategy along with the benefits and drawbacks it can have.
Slide 7: Methods of competition based pricing
This template covers the different methods by which competitive pricing strategy can be considered, such as above-market, below-market, loss leader, and seal bid.
To showcase a further overview of these methods, insert a table along with its implementation and use case. This will make members understand this strategy more deeply.
You can decide which method is suitable for your type of organization, which will help you to earn maximum revenue.
Slide 8: Strategy 5: Value based pricing
This template covers the fifth strategy for value-based pricing along with the advantages and disadvantages of choosing this strategy.
Value-based pricing assesses customers' perceived value of a product, its features and services, and assigns a price to that product based on this data.
Showcase this pricing strategy further by explaining the chart of Current Value & Optimised Value.
Further, discuss the benefits and drawbacks of this strategy to ascertain whether to fo for this strategy or not.
Slide 9: Strategy 6: Psychological pricing
This PowerPoint template covers the sixth strategy for psychological pricing along with the advantages and disadvantages of choosing this strategy.
The use of pricing to sway a customer's purchasing decisions or spending patterns is known as psychological pricing.
Further Highlight the few psychological pricing strategies that most businesses opt for to gain a higher number of sales.
Slide 10: Strategy 7: Premium pricing
This template covers the seventh strategy for premium pricing, also known as image pricing or prestige pricing along with the advantages and disadvantages of choosing this strategy.
Premium pricing, also known as image pricing or prestige pricing, is the practice of artificially inflating the price of a product or service to promote positive buyer opinions that are simply based on price.
You can also insert a few images in the slide, to give a visual representation of the strategy to make the concept more relatable.
Slide 11: Choosing the right pricing strategy approach
This PPT template covers the pricing strategy matrix which shows different levels of price and quality to form four commonly used to sell the company’s products and services at ideal prices.
As per the matrix shown in the below template, choose the strategy which is easy to adapt and has the most numbers of benefits, and has the capacity to overcome the drawbacks.
Wrapping- Up
Utilizing this well-research complete deck, you can systematically think, plan and execute your strategy to achieve an effective pricing strategy to sell your product & service to target consumers.
Download this readily designed set and get ready to implement this strategy in your business to grab a significant market share.
Download Pricing Strategies Free PPT & Pricing Strategies Free PDF
