What Is Growth at a Reasonable Price?

Satisfactory price strategy is the strategy of selling new products from the beginning when they are put on the market at a moderate price that both buyers and sellers feel reasonable. It is a mid-price strategy between oil skimming strategy and penetration strategy. It is generally applicable to products with moderate demand elasticity and stable sales growth. The advantages of this strategy are: it is easy to attract customers, promote sales, and steadily fight to avoid Take the risk of loss. The disadvantages are: It is difficult to grasp the price level that both parties are satisfied with. When buyers are willing to accept higher prices and demand is still strong, the satisfaction strategy appears conservative, and the profit should not be made enough; when the price is set lower, sales can be further expanded in order to make more profit, the satisfaction strategy appears to be aggressive Also, the profit that should be made is not enough. [1]

Satisfactory price strategy

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The advantage of a satisfactory price strategy is that it can avoid the risks brought by the high price strategy and prevent it from being adopted.
GM's Chevrolet Camaro is priced at a considerable portion of the market, and the market size is much larger than the "sporty" segment of the market that is willing to pay high prices. This modest pricing strategy, even when the style of this car is very popular, is still inconvenient for years when supply exceeds demand. why? Because GM s sports car production line already has a product that uses a skimming strategy to price it, Corvetee, adding another product is redundant and will affect the sales of the original high-priced product. Attracting a large number of buyers to the showroom and trying to drive a Camaro is far more meaningful than the short-term benefits of selling Camaro at a high price.
High prices are not actively supported by dealers. In addition, in order to stimulate trial sales, the implementation of a discounted price method is not effective, because when the product is sold at a "normal" price in the future, it will cause customers to feel a price increase and affect the increase in sales. The reasonable price of the new product should be a price that can attract both dealers and end users.

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