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    Apr 03

    Farming Your Web Market

    in General Discussions

    The most important part is that the person or email list people that set the price must have well informed insights into the customer and their perception of value. Revisiting the Concept of Customer email list Value Remember that customer value is total benefits over the total costs email list. Costs include a lot of pricing, such as the initial purchase price, maintenance and repair costs, ongoing fees, installation, training, financing and so on email list. The benefits of the product, such as performance, features and quality must outweigh all of the prices and costs to be worth the value to the customer.


    Approaches to Pricing There are three main approaches to setting a price email list. (1) Cost-Based Basing the pricing barriers (such as the price floor- the lowest possible price), on how much the product costs to produce. Generally, email list if fixed costs are quite high, a part of the price is set lower to maximize volume sold. If variable costs are high, price can be set to email list maximize the per unit margin.


    The issue, again, is that email list this pricing is based on internal measures, rather than on the target market, and could communicate the incorrect message to them. Still, the email list cost-based approach can be a background consideration. (2) Competition-Based As the name suggests, this is basing it on however the competition prices and differentiating a product based on their pricing strategy.

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