There are several pricing policies we can adopt to retain our customers as well as to attract new customers. Successful organization fixes its prices based on competitor’s pricings and deals, brand strength, category storability, availability of a particular brand or product in the market, business stability i.e. new or old, etc. There are several pricing policies a company can adopt. Some of these are-
Value-based pricing- Where price will be based on customer value creation. It can be adjusted by increasing benefits and lowers costs. Also, it can be tuned by categorizing customer groups.
EDLP (Everyday Low Price) - It means maintaining low prices through minimizing variation and deal discounts. Adapted by Walmart, Lidl, Food Lion, and Lucky
Hi-Lo pricing- It means maintaining a high regular price but offer frequent and/or deep discounts. This strategy is perceived by Kroger and Safeway supermarket
Besides that, we can use different forms of price promotions, such as temporary price reductions, coupons, and multi-item promotions, and combine them with non-price promotions like features, displays, and other POS material, etc.
But while designing a price strategy, we must keep in mind that lower prices are not the only way to differentiate. We should highlight other attributes that are of value to the customer and cannot be easily imitated by competitors, such as superior product quality, additional services (e.g., home delivery, a nursery for small children), a unique shopping environment, additional marketing activities (e.g., loyalty programs, non-price promotions, etc.