Blog

June 17, 2021

New functionality: pricing management

Organisations keep track of different prices set for their products in so-called price lists. These price lists must be managed and must always be kept up-to-date. SYMSON can determine these prices for your organisation, so that all that manual work can be taken out of your hands. There are also possibilities to make forecasts on […]

June 17, 2021

Key-value item pricing model

You do not need to achieve a maximum margin on every product. With key value items, the price of a product is very important to the customer. With these products you can attract customers to your business, knowing that they will always buy more once they are in your shop or on your site. For […]

June 17, 2021

Pricing model on an hourly basis

Pricing by the hour is fairly simple for anyone to understand. You bill $X for each hour of work you perform for a client. You can sell prepaid blocks of time (10 hours for $X / hour, for example) or you can just do the work and then send periodic invoices. You can even set […]

June 17, 2021

Mixed bundling pricing model

Mixed price bundling means that customers are free to choose whether they want to buy one of the two products, both products or neither product. Price bundling, also referred to as product bundle pricing, is a strategy used by retailers to sell many items at higher margins and give customers a discount at the same […]

June 17, 2021

Penetration Pricing Model

Penetration pricing is a marketing strategy that companies use to attract customers to a new product or service by offering a lower price in the initial offer. The lower price helps a new product or service to penetrate the market and attract customers away from competitors. Pricing for market penetration is based on the strategy […]

June 17, 2021

High/low pricing model

High low pricing is a model in which a company relies on sales promotions to induce the customer to buy. In other words, it is a pricing strategy whereby a company initially charges a high price for a product and then lowers the price through promotions, markdowns or clearance sales. In this model, the price […]

June 17, 2021

Psychological pricing model

Psychological pricing is the business practice of setting prices lower than a whole number. The idea behind this model is that customers will read the slightly lower price and value it lower than it really is. An example of psychological pricing is an item whose price is $3.99, but which is perceived by the customer […]

June 17, 2021

Cost-plus pricing model

Cost-plus pricing, also known as markup pricing, is the practice of a company determining the cost of the product to the company and then adding a percentage to that price to determine the selling price to the customer. This model is a very simple cost-based pricing strategy for determining the prices of goods and services. […]

June 17, 2021

Premium pricing model

Premium pricing is a strategy whereby your company’s product is tactically priced higher than that of your direct competitors. The goal of premium pricing is to create a perception in the marketplace that your product is just that little bit better than the rest. This works best when combined with a coordinated marketing strategy that […]

June 17, 2021

Performance-based pricing model

With performance-based pricing, you invoice your customer based on the performance of the product or service you provide. Such a pricing model can only be used for certain customers and in specific situations, as it requires a significant (written) agreement between you and your customer. You should take the time beforehand to establish guidelines for […]

June 17, 2021

Customer value-based pricing model

Ultimately, the customer decides whether the price of a product is right. Therefore, from a marketing perspective, pricing decisions, like all other marketing mix decisions, should start with customer value. When a customer buys a product, he exchanges something of value (the price) to get something of value in return (the benefits of having or […]

June 17, 2021

Competitive pricing model

Competitive pricing is a pricing method whereby your prices are set in relation to your competitors’ prices. This is compared to other strategies such as value-based pricing or cost-plus pricing, where prices are determined by analysing other factors such as customer demand or production costs. Competition-based pricing focuses solely on public information about competitors’ prices, […]

June 17, 2021

Dynamic pricing model

In dynamic pricing, companies and shops constantly adjust their prices in order to optimise their margins on the one hand and their sales opportunities on the other. In this pricing strategy, shops look for the price that customers are willing to pay at any given time. There are chain shops where the price of items […]

June 17, 2021

Geographical pricing

Geographic pricing is the practice of adjusting the price of a product according to the location of the buyer. Historically, this was done to compensate for the cost of shipping to more distant locations. More recently, however, this practice has been used to better match supply and demand curves and the market dynamics of different […]

June 17, 2021

Analysis of market data

Market research is formed by market analysis and market observation. This makes market forecasts an estimate of future market development. These two components are separated from each other as follows: Market analysis provides a detailed description of current market conditions with the aim of identifying market structure and potential. Market observation is a continuous and […]