What is a Pricing Strategy?
A pricing strategy refers to the act and process of deciding what is the value of the product or service. You should think about your pricing not only when launching a new product, but also when you are repositioning your brand strategy.
On The Ultimate Guide for Pricing Strategies, Hubspot mentioned how conducting a price analysis should look:
- “Determining the true cost of your product or service
- Understanding how your target market and customer base respond to the pricing structure
- Analyzing the prices set by your competitors
- Reviewing any legal or ethical constraints to cost and price
- Analyzing your current pricing model is necessary to determine a new (and better!) pricing strategy”
Your pricing strategy should be revised every 1-2 years to make sure you are still aligned with the factors above.
Why is a Pricing Strategy Important?
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