Many businesses struggle with sales and revenue, but they are not willing to adjust their prices as per the current market requirements.
“It will deteriorate our brand value”, a business owner claimed during our recent meeting.
That’s an incorrect approach!
Pricing strategy in businesses is not only about discounting but is about balancing inventory levels and current market sentiments.
For instance, Apple phones have always been too expensive for Indian Market.
Ever since their launch in India, they have catered to only a handful percentage of mobile owners.
Finally, Apple opted for price cuts and credit card cashback for the flagship iPhone XR.
It brought down the price from Rs 76,900 to roughly Rs 59,000.
What was the result?
Apple’s sales volume in India has doubled annually in the fiscal third quarter.
Being the second-largest mobile market globally, India is really a crucial market for Apple.
What’s the message?
1) Be unemotional while implementing price strategy
2) Price strategy is NOT only about discounting
3) Never decide price according to how you gauge the worth of your product or how it performs in a different market.
Prices should be decided according to the real time ground realities!
#Pricing #Apple #PricingStrategy