How body lotion brands do the right price strategy

After a body lotion brand has developed a product strategy, what standard should the price strategy be based on? Next, let's talk about how to make the right price strategy.

In fact, in the body lotion price strategy, the product pricing of many companies and brands is cost-oriented and competitor-oriented rather than customer-oriented. In fact, according to market economics, this way of operation is wrong. Let me explain in detail why it cannot be done!

It can't be cost-oriented because cost-oriented is the cost of the commodity plus the profit you want to make, which is the final selling price. Generally speaking, as the sales of goods increase, the cost decreases. That is, the more you sell, the lower the cost.

However, no one can guarantee the sales volume. It can only be estimated. If the actual sales volume is lower than the estimated sales volume, the cost will be higher than the estimated sales volume, and this often happens. Therefore, with cost-oriented pricing, it is impossible to make a steady profit without losing money!

As for why it can't be competitor-oriented?

At first glance, there is nothing wrong with it, and it looks very safe and not easy to make mistakes. But if we think about it carefully, the price follows the competitor, and if the competitor raises the price, you will raise the price, and you can avoid losing the profit you should have earned; if the competitor lowers the price, you will also reduce the price, and it seems that you can also avoid losing what should belong to you. Market share, this reason is equally untenable.

Why do you say that?

Because this pricing strategy is based on competitors, it is very passive. Because the cost of others is not the same as yours, maybe it is lower? You don't even know what your competitor's product strategy is. If you use it for strategic drainage and focus on making profits, the direction is wrong. Therefore, we recommend that you do not price your competitors oriented.

Since cost- and competitor-oriented pricing is not enough, what should we be oriented toward?

The price should be customer-oriented. Everyone is advised to be customer-oriented because customers' consumption is changing from life demand-oriented to value-oriented.

Today, people buy things more to satisfy their inner experience, such as whether they can make themselves more beautiful, in a better mood, or have more identity, etc., not necessarily because of their actual needs in life.

Therefore, the pricing of commodities must consider customers' preferences, spending power, and the psychological experience that commodities bring to customers.