Four Principles Of Supplier Pricing For Channels

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It can be flexible in complex business ecosystems and promote its own growth.

Most of these companies have one thing in common: their sales patterns keep pace with the times.

We call the sales mode they use as an agile sales model, whose basic element is to sell through a wider range of channels, including intermediaries, other channel partners and even customers, thereby enhancing the company's influence and growth rate.

The core principle of agile sales mode is to make full use of the sales force that does not belong to the company, which means that the company must cultivate a wide range of new capabilities.

For example, how should a company set the right price to maximize sales and profits?

For companies adopting agile sales mode, the key is to achieve "channel harmony".

The companies that have made the right pricing strategy and set the right price have taken the first step: they subdivide the customers and channels, determine the overall pricing strategy, make it an integral part of the brand and product strategy, and determine the best price for each subdivision channel and customer; after that, they aim at making profits, rather than taking revenue as the goal, and implementing negotiations.

The author believes that there are four principles for channel pricing.

First, design price points.

Many companies design price points based on market share (rather than production cost).

Some companies design price points according to customer choice and channel cost.

Second,

Thinking about pricing structure.

Customer needs will change over time, so companies must constantly innovate in pricing.

Third, determine the elasticity of demand.

The most essential element of pricing strategy can be summarized as "price elasticity of demand".

This involves the company's understanding of the ultimate customer needs and the impact of price changes on demand.

Fourth, ensure that pricing is in line with customers' expectations of products, services and channel prices.

Through the developed Internet, customers can easily find better prices, so how to meet customer expectations is very important.