Pricing is your secret weapon to skyrocket growth and profit!🚀
But pricing data is often incomplete and tough to gather.🤔
Here’s the good news:
You don’t need all the information to start creating a winning strategy.
You need to FRAME it right!
💡Here’s how to do it using min-max benchmarks:
From the DEMAND side:
🟡Past price trends, like average or percentiles
🟡Market reports on selling prices
🟡ROI insights
🟡Research on willingness to pay
From the SUPPLY side:
🟢Competitor pricing
🟢Minimum selling price (cost + min profit)
🟢Partner/distributor margins
From the MARKET:
🔵Inflation rates
🔵Currency fluctuations
🔵Income growth trends
⚡Think of it as an “instant” Van Westendorp research! Even with a handful of data, you can still set smart Min-Max price ranges!⚡
EXAMPLE:
Market leader charges $10.
A safe competitive distance might be 30%, so your max price is $7.
Meanwhile, your cost + min margin = $5.
Voilà! You’ve just framed your price range between $5 and $7.
Is your pricing process done? Nope!
But you’ve narrowed down options and reduced complexity to make decision-making faster.
From here, you need a more detailed analysis, possibly including market research and AI tools. But you've made the first simple step without a hustle! You've had a quick Pricing win!
Interested in learning more about AI-Powered Price Optimization and Strategic Forecasting?
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