BASIC STRATEGY GUIDE: INDEX
Activity Three (Steps 19-23):
Develop a pricing policy to improve the Company's market share and returns. Prices never seem to be simple or stable. Most markets press you to change your price. You need a pricing policy to govern your Company's actions when it faces these pressures. This activity develops that pricing policy. It helps you anticipate the pricing pressures you may face by helping you understand the likely direction of your market's future long and short term prices. It then looks for opportunities to change your prices compared to those of your competition to increase your profits or your market share. You change your prices by adjusting the process you use to develop a price for each product and customer. You implement specific price changes by changing the components you use to create the price.
Step 19: Project the direction of future prices and margins.
Step 20: Set Objectives and Pricing Guidelines to exploit near term price opportunities.
Step 21: Look for opportunities to change price to gain or save share.
Step 22: Adjust the level where price is applied according to the direction of industry prices.
Step 23: Exploit each component of price that provides an opportunity for the Company to improve its costs or margins.
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