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    Low End Goods Mainly Attract Price Sensitive Consumer Groups

    2013/10/15 21:07:00 175

    ClothingBrandTextile

    What kind of price strategy should be adopted for the sale of goods at the terminal depends on the characteristics of each product and the specific situation of the industry. Different price strategies should be adopted for the sale.


    Commodity price reduction strategy


    Commodity price reduction is one of the most considered means by many businesses to promote sales. Does the price reduction strategy apply to all commodities? Personally, I don't think it is necessary. It depends on your product characteristics, the extent of price reduction, and the number of price reductions.


    Generally speaking, price reduction usually produces two different reactions:


    Because commodity prices have been lowered, low prices have attracted some price sensitive customers, thus luring them to purchase.


    The price reduction of commodities also gives customers an impression of unreliable quality. Customers have doubts about the quality of commodities, thus resisting their desire to purchase. Therefore, the price reduction of commodities should focus on the purchase psychology of consumers.


    The following matters shall be paid attention to when using the price reduction strategy:


    ▲ The number of price reductions should not be too many. The number of commodity price reductions should be as small as possible, and efforts should be made to achieve the goal in one step.


    ▲ The price reduction range must be able to attract customers' attention. Generally, the price reduction range is 10% - 30%.


    ▲ Direct and indirect price reduction strategies must be flexibly applied


    Direct price reduction: direct price reduction is to directly reduce the price of goods to a certain extent, lower than the original price, which is easier to stimulate consumers and prevent competitors.


    Indirect price reduction: It refers to the method of maintaining the original selling price and only increasing the discount rate or commission. Indirect price reduction is a relatively concealed price reduction sales strategy, which can temporarily avoid the comprehensive price reduction competition caused by stimulating competitors. However, because this method does not have a direct price reduction strategy that can bring direct benefits to customers, its effect is relatively inferior.


    Commodity price increase strategy


    The price increase of commodities can be adopted in two cases. One is that when raw materials and production costs rise, the whole industry will adopt the price increase strategy. One is that manufacturing products are scarce, and goods are scarce. The price increase of Maotai liquor is based on this strategy.


    Price change strategy of high, middle and low-grade commodities


    Price change strategy of high-end goods


    The target consumers of high-end goods are mostly high-income groups or gifts. Their consumption psychology generally regards price as a symbol of their social or economic status, and focuses on quality assurance and status display. Therefore, we should be cautious about the price adjustment of high-end goods, especially the price reduction. LV bags, Mercedes Benz, BMW, etc. are symbols of people's social status and identity, and are sought after by a large number of high-income people.


    Price change strategy of mid-range commodities


    Most of the mid-range commodities are the main commodities of merchants, and also the commodities that merchants earn gross profits. Therefore, merchants must carefully adjust their prices in order to obtain greater profits.


    Price change strategy of low-grade commodities


    Low end goods mainly attract price sensitive consumer groups. Even a smiling price reduction will stimulate their purchase desire. At the same time, they are prompted by the group to buy some goods that they think are more affordable. Therefore, merchants often do some discount activities to attract consumers for low-end commodity business methods. If they can do more in terminal layout and atmosphere to stimulate customers' purchase desire, the effect will be more obvious.

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