Marketing Consulting Firms Durango CO

This page provides relevant content and local businesses that can help with your search for information on Marketing Consulting Firms. You will find informative articles about Marketing Consulting Firms, including "The Top 10 Common Pricing Mistakes Most Companies Make". Below you will also find local businesses that may provide the products or services you are looking for. Please scroll down to find the local resources in Durango, CO that can help answer your questions about Marketing Consulting Firms.

Tosch & Associates
(970) 247-4168
730 S Camino Del Rio
Durango, CO
 
Vin Marketing Communication S
(970) 385-4248
835 E 2nd Ave Ste 202
Durango, CO
 
Silver Station Inc
(970) 247-8339
10 Town Plz
Durango, CO
 
Graphic Interpretations
(970) 247-2964
862 Main Ave
Durango, CO
 
Captiva Resources
(303) 832-3131
1700 Lincoln Street # 4750
Denver, CO
Services
Marketing Consultants, Computer Network Hardware, Oil and Gas Exploration and Development

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Dex
(970) 259-1444
1315 Main Ave Ste 109
Durango, CO
 
Athena Design
(970) 385-9517
530 Main Ave
Durango, CO
 
Advertising Innovations
(970) 247-1833
2007 Main Ave Ste 1
Durango, CO
 
A D Design
(970) 247-4357
241 Meadow View Rd
Durango, CO
 
Buffalo Specialties, Inc.
(303) 954-9367
11095 Nome St.
Henderson , CO
 
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The Top 10 Common Pricing Mistakes Most Companies Make

Price strategy is emerging as the most important resource for companies to increase their competitive advantage. The vast majority of companies have spent years achieving gains through cost cutting, outsourcing, process re-engineering and the adoption of innovative technologies. However, the incremental benefits from these important activities are diminishing, and companies need to look at other areas to improve their business results.

Today, companies are looking to serve well-defined market segments with specialized products, messages, product variants and services, and to earn superior profit margins while doing so. Savvy companies are implementing price optimization schemes and focusing on building their organization to serve their most profitable customers. Many are even “firing” customers who are unprofitable. All too many companies, however, use simplistic pricing processes and cannot even identify their most profitable customers or customer segments. This lack of information means that all too many management teams have their sales staff focusing the bulk of their time servicing the least profitable of their customers.

Some companies even embrace policies and pricing strategies that drive away their best customers, and then they wonder why their profits are not growing. In the course of our engagements, we have seen examples of good and bad pricing policies. The following is a list of ten of the most common mistakes companies make when pricing their products and services.

Mistake #1 : Companies base their prices on their costs, not their customers’ perceptions of value.
Prices based on costs invariably lead to one of the following two scenarios: (1) if the price is higher than the customers’ perceived value the cost of sales goes up, discounting increases, sales cycles are prolonged and profits suffer; (2) if the price is lower than the customers’ perceived value, sales are brisk, but companies are leaving money on the table, and therefore are not maximizing their profit.

Costs are only relevant in the pricing process because they establish a lower boundary for the price. In certain circumstances, there are strategic reasons a company may decide to sell a product below its cost for a period of time, or to a certain market segment as a “loss leader.” However, when a price is set according to the perceived value of the product or service, sales are brisk, and profits are maximized.

One Atenga client manufactures audio components. Across their product line, they set prices according to a multiple of the parts cost. When the market for high-end audio components boomed, the company did well enough. But as competition began to increase, sales stagnated and profits evaporated. Our research showed that particular products were perceived by certain segments of the marketplace as “priced too low.” Repricing of those products created e...

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Babcox Media • www.babcox.com
3550 Embassy Parkway
Akron, OH 44333
330-670-1234 • (FAX) 330-670-0874