Playing the Pricing Card

Pricing is perhaps the biggest bother in an economic downturn. On one hand, prices must go up to reflect rising costs. On the other hand, prices must drop for a business to remain competitive.

In the next series of articles, I will discuss the likely pricing related events that may occur in the marketplace. This scenario planning will help entrepreneurs prepare for the coming price wars.

Situation # 1: Price Hikes. To keep up with the rising business costs, prices have to be increased. Or must they?

Situation # 2: Price Wars. To attract more clients and generate more sales, businesses will slash their prices. Is it a good idea? What’s the best way to go on about it? How are price wars fought and lost or won? 

Situation # 3: When facing a dilemma (Situation 1 or 2), it maybe best to consider the third option: Playing the Pricing card differently.

Every single entrepreneur will have to face pricing play in these days of low customer confidence. The ability to draw and play the strategically sound card right may turn out to be the difference between prosperity, mere survival or death.