The Strategy and Tactics of Pricing

The strategy and tactics of pricing involve setting the right price to attract customers while ensuring profitability. It considers factors like costs, competitors’ prices, customer willingness to pay, and market conditions. Strategy involves long-term goals, such as gaining market share or positioning as a premium brand. Tactics are the specific methods used, like discounts, bundling, or dynamic pricing. The goal is to find a balance that maximizes value for customers and profits for the business, adapting as market conditions change. Effective pricing combines thoughtful planning with flexible tactics to meet business objectives.