34. Pricing Strategy and Objectives
The way in which a company positions and prices its products and services may be the most visible evidence of how a company values its brand. A company that seeks product or service leadership is less concerned with pricing than it is with innovation.
A company’s pricing strategy is an important and complicated decision. To make matters worse, there are dozens of different pricing methods companies use. I want to simplify the process as much as possible and present you with a process that will be used to help you develop a pricing strategy aligned with your business strategy. The first goal is to understand your objectives. There are four main pricing objectives that work for most businesses:
• Profit Maximization: ...