Friday, 12 June 2009
Distributing and controlling product prices
If you are distributing a product and need to try control the price of it in the market you can have difficulties as your customers will all essentially be competitors. To try to stop them from trashing the pricing too much to beat one anther and thereby reduce the overall price and perception of the product, you may have to supply to different customers at different prices. The one's that have proven themselves to be reliable and you know won't trash the price, you can supply to them at the low trade price. But the customers that you think are likely to trash the price to get more sales should be sold to at a higher trade price so that they have less margin to reduce by cutting the price. If they persist then you do need to stop selling to them all together to keep your products image in tact.
Labels:
competitors,
Distribution,
pricing
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