The pricing policy of a business, among other factors, greatly influences its revenue potential. For this reason, it is most imperative to carefully consider and evaluate some factors before deciding on the artificial turf prices for your business. The survival and growth potential of your business may very well depend on it.
How much does it cost to deliver your service to the end-consumer?
As a new player in the industry, your first instinct may be to charge a price that is way below the market mark in market penetration strategies. The technique may work, but, of course, with no profits realised for the business.
Your business will incur many expenses including transportation costs from the artificial turf manufacturer, remuneration for your installation team, delivery costs to the site of installation and all operational costs that typically go into running a business in Perth. Consider cost-plus pricing (adding a fixed percentage of the cost of availing the product) when setting your artificial turf prices in order to realise a profit from your sales.
How much is the target customer-base willing and able to pay?
When it comes to driving sales by choosing a pricing strategy, the options are endless. From penetration pricing and the unethical predatory pricing to psychological pricing, the key to getting it right lies in undertaking a thorough market research. Identify your target market and endeavour to know just how much they would be willing to pay for your services.
On http://forums.whirlpool.net.au/archive/1819038 and other active forums, you can find first-hand insights into the expectations and appreciation of the realities of artificial turf prices by real customers. What is evident from the discussions is that you don’t want to set your prices too high as that may drive away some potential customers. Neither should you set them too low as that may subconsciously call the quality of your product into question in the minds of the clients.
How much is the competition charging?
Beyond just knowing how much your competitors are charging, it is important to understand the reason behind the set prices. It may prove economically damning for your business to blindly charge lower than big industry players without accounting for the fact that they probably receive discounts from the manufacturers and enjoy other economies of scale.
Evaluate the segment of the competitive market that your business can thrive in. A great way to stay ahead of the competition in that segment and justify charging more is to ensure that your synthetic turf is of superior quality and appeals to clients’ exact preferences. Today, apart from functionality, most, if not all, potential clients across Perth and beyond are looking for artificial turf that is realistic; one that looks and feels like natural turf. Supply a unique product that meets the specific demands of the customer and yours will the benchmark against which other businesses set their prices.
For each of the three areas highlighted, there are many specific strategies that your business may employ in setting optimal artificial turf prices. Ultimately, the price set should bring in revenue and realize a profit, reflect the added value of your product against competitors as well as achieve the set market share goals.
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