Re: Pricing strategies Re: Pricing strategiesI Do Not believe that price should ever be The determinant for a buying
decision, especially from different vendors. There are many times I will pay
a higher price for quality, convenience (sp?), performance, etc. This is
really true for me - my services may look pretty pricey, if you only look at
the amount of dollars to be spent.
In my note, and in my situtation, I am refering to a company doing business
in multiple channels. Using myself as an example, I sell face to face and
sometimes using a phone/snailmail/fax combination. If I reduce the amount of
time I or someone from my firm must spend, or if I reduce my marketing costs
in one segment, or if I reduce expenses in any one area, I always rebate a
part of those excess profits to my customer.
For example, say it costs me about $800 to get a plan done for Mrs/Mr Smith
if they come into my office and follow traditional methods. If, using the
reduced marketing costs of the net and some other methods to transfer data
and communicate, it now costs me $600 to get the same plan done, I feel that
I can now pass some of that savings to the customer. I get lower costs and
my customer's price goes from $950 to $800 and I still make More Profit. :-o
Ah, capitalism! The only way to help others and make lots of money too!
I hope this made my feelings more understandable.
Teresita Dabrieo
Dabrieo@aol.com
(this is the preferred address)
Dabrieo & Co.
Financial and Entreprenuerial Advisory Services
Chicago, IL