Clothing Pricing Strategy Enables You To Turn Losses Into Profits.

Penetration pricing strategy is to enter the market with a lower product price, aiming at accelerating market growth in the short term, sacrificing high gross profit to obtain a higher sales volume and market share, resulting in significant cost and economic benefits, so that costs and prices can be continuously reduced.

Penetration price does not mean absolute cost, but rather low relative to value.

The success of market penetration pricing is:

(1) there is enough market demand.

Second, consumers are highly sensitive to price rather than strong brand preference.

Mass production can produce significant cost.

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Low price strategy can effectively combat existing and potential competitors.

We should take advantage of the mentality of customers to seek cheap, and adopt the pricing strategy of maintaining capital profit and small profits but quick turnover in the feasible range of product prices.

Cheap sales can quickly open up sales and expand sales and market share.

If an enterprise wants to expand its market share, it should adopt the penetration pricing strategy decisively, that is to say, the clothing price with a large demand price elasticity coefficient should adopt a strategy of small profits but quick turnover.

Competition oriented pricing is mainly based on competitors or market prices, or the same price as the main competitors, or higher than or below the competitors' price, depending on the product and demand.

As long as competitors' prices remain unchanged, prices remain stable even if costs or demand changes, and vice versa.

The commonly used methods in the competition oriented pricing method are: one is the market price method, that is, the price method of the enterprise is consistent with the price of the competitors in the same industry.

The two is the cost competitive pricing method, also known as cost subtraction.

Based on the market price, the method of obtaining profits through reducing the cost of products.

Profit = market price cost. When the price of clothing market is fixed or the competition of commodities is fierce, enterprises can get more profits only by reducing the cost of clothing products.

The new products will be listed at a high price. They will gain huge profits in the short term and recover their investment as soon as possible.

Just like skimming cream from milk, the essence is called skimming pricing.

The conditions for successful skimming pricing are:

(1) adequate

Customers have high demand for this product and are willing to pay high price.

Second, the market price sensitivity is low, and the demand elasticity is small.

(3) there is still enough profit under the small scale production cost.

4. High prices will not attract more in the short term.

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High prices can set up a high quality product image.

The company also protects the competitors from providing low price products by maintaining the reputation of the patent, copyright, high-quality reputable products, the right to use scarce resources, and the priority of the best distribution channels, so as to maintain long-term profits.

When pricing a popular or high-end product, a company can adopt the skimming pricing strategy if it is to maximize its profit. Brand name, high-end and popular fashions are usually priced at high price.

Discount pricing strategy discount pricing is the seller in order to correctly deal with the buyer's interests, promote the production and operation of the enterprise, according to the content and conditions of commodity pactions, such as the object of the paction, the number of pactions, the conditions of payment, etc., the buyer has a certain price discount.

The discount pricing in the clothing market is manifested by the discount of the manufacturer to the dealer and the retailer's discount to the customer.