Four Principles For Suppliers To Price Channels

Some company Able to operate with ease in the complex business ecological network and successfully promote their own growth. Most of these companies have one thing in common: their sales model keeps pace with the times. We call the sales model they use as the agile sales model. Its basic element is to sell through a wider range of channels (including intermediary organizations, other channel partners, and even customers), so as to improve the company's influence and growth rate.

The core principle of the agile sales model is to make more full use of the sales force that is not under the company's "control", which means that the company must cultivate a wide range of new capabilities. For example, how should companies set appropriate prices to maximize sales and profits. For companies adopting the agile sales model, the key is to achieve "channel harmony".

　　 take Companies with correct pricing strategies and appropriate prices have taken the first step: they subdivide customers and channels, determine the overall pricing strategy, make it a part of the brand and product strategy, and determine the best price for each subdivided channel and customer; After that, they negotiate with the goal of making profits rather than income.

The author believes that there are four principles for channel pricing:

First, design the price point. Many companies design price points based on market share rather than production costs. Some companies design price points according to customer selection and channel cost.

Second, again Think about the pricing structure. Customers' demands will change over time, so the company must constantly innovate on pricing.

Third, determine the elasticity of demand. The most fundamental element of pricing strategy can be summarized as "price elasticity of demand". This involves the company's understanding of the final customer's demand and the impact of price changes on demand.

Fourth, ensure that the pricing is in line with customers' expectations for products, services and channel prices. Through the developed Internet, customers can easily find better prices, so how to meet customer expectations is very important.