Pricing Strategies Marketing 

As far as pricing strategies for B2B marketing is concerned it is important to treat pricing seriously because, on average, every one percent a firm increases its prices, it leads to a 10 percentage increase in profits. Business buyers tend to buy for "rational" reasons while consumers tend to buy for "emotional" reasons. Of course there are exceptions to this generalized rule. Business buyers are demanding hard facts to justify expenditure, most notably a strong return on investment (ROI). It is best if a firm can show that the price the firm is asking is a "no brainer" even when using conservative assumptions about ROI. . In a competitive market, sellers are price-takers, not price-setters. Sellers of "commodity" products or services tend to be price-takers. The best way to be a price-setter, not a price-taker, is to differentiate your products and/or services in ways that are appreciated and valued (monetarily) by the prospect. This starts with a clear and compelling branding strategy. The fundamentals of value revolve around the trade-off between the benefits a customer receives from a product or service and the price they will pay for it. Customers do not buy exclusively on price but are driven on value buoyed by the disparity between benefits a product/service offers and the price that is charged. It is necessary to find out how much will a respondent pay for an added value service/product over and above the present price or how much of a cutback in service/product requirement would necessitate a price reduction. Pricing market research can help to verify pricing assumptions as well as answer the questions of where price/product trade-offs may lie, in addition to where extra value can be delivered. Pricing research needs to take numerous factors into consideration such as emerging trends in the market that may alter perceptions, product inertia or even history of the marketplace (i.e. order of supplier entry into the market).