A pricing strategy is a business's overall plan for setting product/service costs, balancing profit goals with market realities, costs, and customer perception, using methods like cost-plus (adding margin to costs), competitive pricing (matching rivals), value-based pricing (based on perceived value), price skimming (high-to-low), or penetration pricing (low-to-gain share) to attract customers, build brand image, and ensure profitability. Key factors include costs, competition, market demand, and strategic goals like market entry or premium positioning.
Pricing template
This template guides the user to calculate the price of a product or service, considering all relevant costs that may impact on sustaining profit and the company.
The first phase of the template requires you to identify the main production stages involved in the production of the product or service you want to price; as well as the supporting functions that enable such production (directly involved in production) and constitute cost drivers to be considered when calculate price, but are not necessarily directly involved in the production process.
The second part of the template requires of the user to identify the resources to be considered when doing the pricing, and link it to the different phases of the production process.
