By Meredith Wood
In a saturated market, it can be hard for your business ideas to gain funding and flourish. Between marketing, driving sales, and keeping operations going, maintaining a health cash flow can be difficult. That’s why you want to ensure that your pricing strategy is doing as much for you as you can. This begins with comprehensive market research. You must be incredibly familiar in market in which you will compete, and the expectations your audience has of similar products. And to truly succeed, you should figure out what your value proposition is compared to others in your space.
To do this, take a good look at your competitor’s strategies. Try to identify who they’re primarily marketing to, so you can see which niches are more saturated. Are you offering anything that they are not? Even just superior branding or a premium feel can be enough to set you apart. With an understanding of who you’re competing weight, it will be easier to decide on a pricing strategy that offers an incentive for customers to purchase your products.
It’s also essential to thoroughly research your target audience. Are they actually willing to pay more for a more luxury feel, or are they only after a bargain? Run tests, see what sells the most, and ask for feedback. Being tuned into your target market is the best way to know what steps to take in your business.
With a thorough understanding of your market and profit goals, you will be better able to select a pricing strategy that drives success for your business. For more on which pricing strategy is right for you, check out this infographic below by Fundera: