Pricing strategies

Week 2 Discussion 2

Pricing strategies

  I am a fan of eating at Arby’s Restaurant and I have done so many at times. Arby’s Restaurant Group has always had a lot of quality products and has always had more than roast beef on its menu, but I think we found a particularly effective way through the launch of the “happy hour”. It usually happens from 2 to 5 p.m, during which time participating locations sell sliders, drinks, and sides for just one dollar. This is an effective way for making customers to come back for more of their food stuffs due to having a low price strategy.

The challenges which create an effective pricing strategy are currency fluctuation, anti-dumping laws and inflation. Currency fluctuation contributes to the price decreasing or increasing thus having some immediate consequences for the consumers. When anti-dumping laws are in place, the government stops foreign made products from giving serious competition to the domestic products. In the case of inflation, the persistent upward change in price levels leads to products or services having high prices. To manage the challenges of price strategies, benchmarking of pricing may be used to limit prices from increasing without warning. This also includes managing prices across all pricing channels in the wholesale and retail market.

Sources

                                        Response to Kelly Pratt

Hello Kelly, I really love the way you have stated the talked about the promotion of sales by comes which also got me thinking of effective ways sales promotion. In my case I have realised there are three major ways to promote sales. The three ways include targeting your effort towards the customers you wish to gain and market your products. Also you can plan your incentive through know what plan to use to get the customers to like and buy your products and services. Then you should know what you want to achieve through the promotions you will do to pull in the customers. What other ways can you use to promote more sales?

                                   Response to Lauren Sparks
Hello Lauren, I also think lowering of prices may affect the products or services you are selling in a very negative manner. If a company lowers its prices it may risk having a bad reputation of not being able to keep up with the competition around it. So many of customers may opt to go to the company which has not lower its prices because they think due to price lowering the goods and services may be lowered in quality too. Lowering of prices may also lead to the losses after sales which affects entrepreneur skills. What ways do you think lowering of prices affects the marketing of a company?