First, the role of lifting price adjustment
The adjustment of product prices frequently or up or down is an objective requirement of the law of value, and also an important pricing strategy for enterprises. Its main functions are as follows:
One is to reflect the value of the product. The price is based on value, and the price is determined to reflect the value of the product correctly and in a timely manner. Under normal circumstances, the better the quality of the product, the greater the value of the product, the higher the price of the product. The opposite is also true. The so-called "a penny and a share" is the reflection of the size of the value.
Second, it can benefit product sales. Product prices are closely linked to market demand. When product prices rise, market demand declines. Conversely, when product prices fall, market demand rises. Sometimes, due to the disparity in product utility, even if product prices continue to rise, market demand has also increased significantly. For example, the price of color TVs is several times higher than that of black-and-white TVs, but the market demand for color TVs is still higher than that of black and white TVs. It is much bigger. Therefore, the price of the product is constantly adjusted. As long as the timing is good and the “fire†is observed, the sales of the products can be promoted regardless of the rise or fall.
The third is to adapt to the market situation. The supply and demand relationship in the market is constantly changing. Some products are selling well at this time, and they may be slow-moving at that time. Some products are unsalable at this time, and they may sell well at that time. Therefore, the price of the product should also adapt to this change, rising when it sells, and falling when it is slow-moving, in order to keep the supply and demand as good as possible.
The fourth is to be able to grasp the business initiative. Whether the price of the product rises or falls, it is good for the enterprise as long as the timing is grasped. The rise is higher, which can enable enterprises to obtain more profits; the drop will reduce the sales volume of products and accelerate the turnover of funds, which can also increase the profit of enterprises. Therefore, the price of the product rises and falls reasonably, and it is possible to make the enterprise grasp the initiative of the operation and stand in an invincible position in the fierce market competition.
Second, how to skillfully
Even if you have a thousand reasons, for 10,000 reasons, consumers will not welcome the price increase of your products. They are psychologically born with an imbalance. A well-known fact is that after a product has risen in price, it will be difficult to sell for a long time. Only after people have gradually adapted to the psychological situation can the market recover slowly. In view of this, savvy entrepreneurs try to avoid direct price increases. However, sometimes due to inflation, market prices continue to rise generally. The rise in prices has increased the cost of the company. At this time, companies have to adopt contingency measures to increase prices. However, the price increase is skillful. If this technique is applied properly, the company will be free from or less affected by the price increase. If you don't talk about skills at all, or if your skills are poor, your company's sales will be much more affected.
Generally speaking, there are two ways for companies to increase the price of a product, namely, a clear or a dark tone. The clear tone is to increase the price of the product directly. For example, a certain type of motorcycle, previously sold for 158OO yuan, now sells 16,000 yuan a car. The dark tone is that the price of the product is unchanged, and the price is actually increased in all aspects of the product.
In the author's view, it is better for enterprises to avoid clearing up. In the case of being forced to do so, they should also say and promote the actual reasons for price adjustment as much as possible, such as rising raw materials, higher processing costs, and higher sales channel costs. and many more. Among the many books published in previous years, one of them is deeply loved by people, and that is the "Pentagon Book." When it was first published, the series sold for 5 cents each. Later, due to the skyrocketing price of paper and printing, the book of 5 cents has been impossible to do, and the price increase is imperative. The propaganda work of the series of publishers did a good job. They printed a paragraph on the back cover of each book. The general idea was that the Pentagon Series had to raise prices for well-known reasons. However, the purpose of the series remains unchanged, and it will continue to provide readers with high-quality and low-cost intellectual reading materials. At that time, the price increase of printed materials was a well-known fact, and the readers were fully understandable, plus such a sincere statement, readers. It is even more convincing.
Therefore, the rise in the price of the Pentagon Series did not have much impact on its sales. In addition, when the implementation of the clear adjustment, the price increase should not be too large. Foreign countries generally use 5% as the limit. This is in line with the consumer's psychological endurance. In contrast, some goods in China appear at a price increase of 20%, 50% or even higher, which is not suitable. Therefore, companies should be careful to avoid the occurrence of large price increases.
When possible, it is better for companies to raise prices in a dark manner. There are many ways to conceal, and only two are shown here.
First, the price of the replacement model is disguised. A little attention can be found that foreign products are often a series of several models. This practice cannot but be said to be a manifestation of business. From the price point of view, it is very convenient and price-conscious to raise the price. Just replace one model. The internal quality is almost exactly the same, and individual parts (such as the appearance) can be slightly modified. This kind of price increase is almost undetectable to consumers, and it is impossible to talk about the problem that is unacceptable. It should be said that this is an extremely scientific and artistic price increase method, which is already adopted by many enterprises in China. Manufacturers such as range hoods, washing machines and other products have successfully used this method.
Second, reduce the number of products and keep the price unchanged, and achieve the goal of real price increases. Some products already have customary pricing, and can achieve their goals by reducing the number of products. In this way, when the competitor raises the price, you can repeatedly say that the price remains the same. Although in essence, you and your opponent have the same actual profit, consumers are more likely to accept your product than your competitor's product. This is related to the customary tendency of consumers, and also related to consumers’ dislike of price increases.
Third, some problems should be paid attention to when the product price is reduced
Product price reduction is a major event for enterprises and must be treated with caution. Otherwise, it will be adversely affected by the company. Careful treatment should first be expressed in the understanding and understanding of customer response. For the price reduction of enterprise products, customers may make such reactions: first, there will be new products to replace the original products; second, the products themselves have problems, the sales are not good; third, the financial difficulties of the enterprises, it is difficult to continue to operate; The price will fall again, wait for the first time to buy; the fifth is the quality of this product.
From the above reaction of consumers, it is known that consumers' price reductions for manufacturers are not considered to be their own preferential treatment. In other words, they are basically negative rather than positive about the price reduction actions of the manufacturers. It is also possible for competitors to use your price cuts to carry out large-scale propaganda campaigns and attribute your price cuts to quality problems. Therefore, the author believes that the price reduction should be particularly prudent, the reason is this. As mentioned above, the price increase can be implicitly mentioned, and the price cut can also be lowered. Keeping the original price unchanged, in fact, is to maintain the dignity of its own brand, that is, to maintain its own sales position. However, in order to expand market share, in order to reduce the price in order to compete with competitors, the method of dark drop can be adopted. There are many ways to darken, here are just a few examples:
First, the implementation of the coupon system. You can enjoy a few discounts by issuing or placing a coupon in the newspaper advertisement bar and telling the consumer to take the coupon to purchase the designated item at the designated retail store. The impact of this approach on consumers is that the commodity is not slow-moving, not outdated, and not of poor quality. It is not a price cut, but a preferential treatment for some people. I am one of these people. Therefore, they will actively buy the vouchers. It should be noted here that the distribution of coupons should not be too large, and it should give people a sense of urgency; coupons published in newspapers should have strong time limits and cannot be too long, so that people have a sense of urgency.
Second, refund some of the purchase price. Tell the consumer that if the certificate or label that proves the purchase of a specific product is sent to the manufacturer, the manufacturer will return a certain amount to the buyer through the post office.
Third, give gifts in kind. In order to promote the paint, a British painter came up with a wonderful idea: to give a paint brush to 10O0 customers, and wrote in the postscript: "You seem to need to paint the house and make it look new. For this, I will give you a special gift. Put the paint brush. Anyone who comes to our store with this letter will be given a 20% discount on the paint. Don't miss the opportunity." The painter is sincere! Everyone has not missed the opportunity, the sales have increased by 5 times, and it is notorious. The beauty of this idea is that he took the initiative to give you a paint brush.
Fourth, it appears as a "new product." The so-called appearance of new products refers to the replacement of the brand through simplified packaging, so that it appears as a "new look." This new product is priced lower than the old product, easy to sell, and has nothing to do with the existing product.
At this point, some readers may ask, if the price is lowered, the price will be lowered. Why is it so shameful? There is no doubt that the manufacturers have racked their brains and it is not a whim to come up with such an idea. The reason why it appears in a dark drop is due to the following factors. First of all, if the existing brands are to cut prices, it will be very difficult to raise prices in the future. The above methods of using the above-mentioned dark drop are very flexible and can be put in place at any time. Second, lowering the price of existing goods can damage the image of the product. Cheap, especially the low price after the price cuts often give consumers the feeling that the goods can not be sold out of helpless. Taking all of the above methods to reduce prices does not impair the image of enterprises and products in the eyes of consumers. Later, if you do not cut prices and use disguised price cuts, you will not incur dissatisfaction and attacks from your peers, nor will it trigger a chilling price war.
What I want to say later is that if you have to cut prices when you are forced to do so, one principle that must be adhered to is that there must be one step in place, and there must be no falling prices. One of the basic mentalities of consumers is to buy and not to buy. After a short period of time, and many times price cuts, consumers will involuntarily generate expectations that you will fall back on prices, and will not rush to buy. If this is the case, the plan to promote sales through price reductions will be completely lost.
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