Awhile ago, I got an email from one of the "gurus" I follow and it shocked me. The gist of it was this person wanted to trade services for a household item.To say it floored me would be an understatement.What was worse was a few days later t Automation technologies represent a fundamental aspect of any modern industry. The major types of industrial automation solutions, such as DCS, PLC, SCADA, and MES, are used on a large-scale in process and discrete industries.DCS technologie
Which product feature of yours is every buyer keen to know about? Which sales tool closes prospects instantly? Your price. Yet, despite the far-reaching consequences of a companys pricing, Im surprised at how little time small business owners spend on it. Here are a few ways to bring pricing to the forefront of your marketing plan. Price is a promiseLets say youre shopping for cereal and come across two varieties. One is a well-known brand in a resealable 20 oz. package, which comes with a toy and sells for $4.99. The other is a store brand, thats packaged in a non-descript plastic bag and sells for $2.99. Which do you buy? If price was your only factor, youd buy the $2.99 brand. But there are other factors. In this example, the $4.99 box promises you the reputation of a well-known brand, a toy to entertain your kids and the convenience of resealable packaging. Remember that a price guarantees all the promises wrapped up in your product or service.Determine your promisesBefore you ever touch a calculator, first take stock of all the value factors that are bundled into your price. If your company sells a product, these might include:·the performance of your finished good·your distribution capabilities or·your service and installation services.If yours is a service, value factors might include:·the bottom-line impact of your deliverable·your companys ability to meet tight timelines.·your experience level. Pricing financiallyAfter taking stock of all your value factors, grab a calculator. First, add up all your direct costs (those incurred as a result of delivering your service) which include labor and raw materials. Then, add up all your indirect costs (all other costs that arent direct) like rent, insurance and utilities. Now, identify the profit your company needs to attain in order to fuel new investment and reward your employees. Finally, forecast what your annual unit volumes will be. Now, divide the total of your costs and profit by annual units sold, and you end up with a unit price. Sure, this is a simplified example, but the process is sound. This kind of analysis will help ascertain where your prices should be from a financial perspective. Pricing competitivelyIts important not to stop here. Instead, gather competitive pricing information from any of these sources:·Intermediaries (distributors, brokers)·Previous customers·Prospects·Ex-employees of your competitors·Trade associationsAfter digging around enough, youll be able to generate a range of prices that your competitors fall into. Together with your financial prices, youll now have two reference points. Pricing by positionThe last step is to and ask this question How do we want to be perceived in our market? In my book The Marketing Toolkit for Growing Businesses