Pricing Strategy For Companies
Here is no set formula for companies to create permanent pricing strategies. Like everything else in business, the price is a developmental progression that requires continuous enhancement. An increase in the price of the products and service leads to greater profits. A company prices its products and services at the premium rate because of unique character and also because customers do not mind paying the top price since they are more interested in the value that is provided to them. An effective pricing strategy will decrease fixed costs, boost capacity, decrease inconsistent expenses and increase price and profit margins. This also avoids conflict between the sales team because territories are allocated specifically and the sales people will not clash over clients
The best thing for the company to do is to break up its pricing structure in a manner that encourages new customers to do business with them and existing customers to pay according to the services that are being provided to them. Since it provides great product and service the company can effectively apply a premium price strategy without losing too much ground to its competitors. This will optimize profits and enable the company either to employ more sales personnel or just do business with companies on the ratio of their profitability to the company specifically for customers in the C and D categories. This will increase its turnover and profit margins without disturbing its essential customer base of A & B customers.
There are several ways that the sales team can effectively cover maximum geographic sales territory with its sales team. However, successful sales managers should know how to choose the appropriate arrangement that will give the sales team maximum returns with which they can make the most sales and secure the maximum amount of income and profits for the company.
One major advantage that the company can obtain by efficient sales team organization will be to cover the maximum geographic area by a selected sales team.
This will considerably reduce traveling time and increases selling time by getting new customers or providing better services to the existing ones. The company policy should be to allocate helps sales territories the people who are familiar with the geographical area along with the local language and customs. Companies must organize its sales teams strategically within territories that the people are natives of or at least as familiar as a native of that area should be. This will definitely increase sales as customers are usually more comfortable working with someone who is familiar with their language and customs.