Price optimizing - raise or sink?

In every successful business, price strategy and optimization is the core to having positive financial turnover and fiscal year.

Prices up -> Margin is growing with less quantity

Prices down -> Increase sales and orders for less margins

Discounts, logistics options and paying methods allow diffferentiation of a company. In a company where the price is the only constant is according to many models conducted, not the optimal one.

As a customer, you want to satisfy most of the needs. As a producer you want to have maximum revenue while satisfying those needs.

Elasticity is defined by the relativity in the changes in price change percentage and the market need.

If a 10% price erhouhung, brings 2 or less percatange of down changes in needs, then the revenue will grow. If f.e there is 5% change of needed services, then the revenue will drop. Es gilt, elasticity or efficiency coefficient between 0 and 1 leads to positive changes in revenue.

Price optimisation should be a mixture of different tools, even such that does not directly lead to payment but contribute to the execution of the pricing and discount strategies.

Pricing strategy should be given at the start of any business or company and not be changes often, drastically or on impuls. Changes can be conducting at difficult and extreme times, like huge inflations, where you want to test the market and safe the company from negative falldowns.

Pricing strategy can be made based on value proposition, solution solved, the quality offered, long-term perspective, quantities and local markets and taxes.

Competition should not be one of the factors when determining prices. Rather let it adjust to you than you to build your pricing and discounts offered based on the competitors price quotes. Whatever pricing strategy you build and regardless of how many competitors, the prices will not change dramatically within a market, because of relatively similar costs in terms of production and materials.

In my opinion, prices have and have not played a big role in customer byuing decision on average. When you sell, you sell your product, your name, your team, your company, your history and your future, mostly your value. If you manage to offer amazing services together with well structured pricing, the chances of positive turnaround are as good as the both above.