A note on pricing: During the first day of my graduate level Brand Management class taught by Eric Schulz he said, “If everyone bought on price we’d all be driving a Yugos, none of you would be here, and I’d be out of a job.” Take caution when basing your marketing on price. Pricing changes have an immediate and lasting effects. If you don’t think that this is the case please study pricing strategy a bit more in depth. Why does Tide sell more detergent when the generic brand is the “same”. There is a reason. You need to strive to understand all the effects pricing changes will have on your product today, tomorrow, and in the future.

Although pricing is important and there are many different strategies that are based around pricing, Customer Value is not defined solely by savings. There are many currencies in life other than money, such as, time, space, information, energy, enjoyment, anxiety, and stress. To successfully hang your marketing efforts “hat” on price you must control as many factors outside of your immediate product that could affect the price. This could mean controlling the cost of raw materials, shipping, etc. Make sure you understand and have a pricing strategy in place before you jump to drop your price. You just might be dropping your profits, sales, and employment status.

Additional reading

Continue reading: Stage 2: Arrangement–Reflection

Go back and read-Step 1: Order

Resources: Is Price *Really* the Most Important Factor in Consumer Loyalty?