Pricing Strategies Can Really Double Your Profit Margins

Sophisticated Pricing Strategies, Offers Opportunities for Extreme Profit Improvements!

Consider this extreme statement – your net profit margin is
10 % - if you could increase the price of your product by 10 % without loosing unit sales, you would double your net profit margin to 20 %.
The 10 % increase in price would increase your profit by
100 %.

If you decrease the price of your product from $99 to $89 – and that doubles your sales, would that more than make up for lower profit margins? No doubt about it, determining the best price is one of the most important – and yet overlooked of the classical 4 Ps of marketing:

Pricing – Product – Place - and Promotion.

Pricing Strategies to Maximize Profit Margins!

The correct pricing strategy can literally make, or break a project – price products correctly to maximize margins and profits, regardless of your business model. Before you set your pricing, you must decide upon a pricing model – and this pricing strategy should be consistent with your overall business model. Pricing always needs to accomplish a goal, but that goal is not always to make the most money, especially not on the Net.

Price to Penetrate

We assume your goal is to penetrate the market fast and deep to sell as many items as possible. Therefore you set your price low – but how low?

You don’t want to give away your store – and that’s why we recommend you to find the highest low price – the right price to maximize both profits and number of sold items. Your basic goal is to acquire as many customers as quickly as possible – you might even price at a loss for a start. Because each customer has lifetime value – and that value can be hundreds of times greater than some small gain made on your first sales.

Lifetime Value

With this in mind you are happy to reduce, or forego that first profit. The more competition on its way, the more penetration pricing will be appropriate – and you better get your customers now.
Still your penetrating pricing strategy only makes sense when you keep your customers – your pricing strategy must realize that lifetime value.

Massive Base of Customers

Customers can be loyal in more than one way. With an outstanding product you have guarantee of your customers return – you know that he will be back. has discounted deeply in order to dominate the book market and more categories in cyberspace. In spite of loosing massive amounts of money, they are building a massive base of customers – hopefully lifetime customers!

Dominance in the Market

MYSS – teaches you how to join the 1 % of online business which really know how to sell on the Net – and shows you how to eliminate all the problems that are killing your sales.

The over-delivering MYSS-book, with absolutely essential marketing references for anyone selling anything on the Net

If you want to establish dominance in the market for any reason, price to penetrate – even if it means you have to accept low profit margins. "Market share dominance" is the most important factor in the marketplace - and the Net gives extra value to this statement.

High Price Tactics

High Price Tactics – also known as "Selling off market share." From high profit margins you gain income – in exchange of a smaller and smaller percentage of the market buying your product. High-end web hosting and design companies capture a niche market based on uniqueness without being copied – and these companies can usually only handle a limited number of clients at a time. Their customers are willing to pay a higher price for this selectivity.

The Art of Setting a Price

Most business people tend to skew a penetration price too high – trying to make more money. Skimmers are worried about scaring too many people off and price too low and they loose.
Pricing strategies can be decided much more precise and you can get the best help with pricing your product.

We highly recommend the Web site where you can look into "the art of setting a price into a clear science" that hopefully shows you how to price your products to yield a maximal return – no matter what your pricing strategies was - and your business model is.
Get Your Pricing Strategies FREE TRIAL to Maximize Profit Margins

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