0 1 Importance of pricing
If you start a project, but haven't figured out how much the product should be priced, what problems will you find in the end?
I am an idiot.
Because the price determines the consumer's payment cost.
The customer groups with a unit price of 200 and 50 are completely different. Therefore, pricing is class division.
What is the division?
Divide who your customer base is, who you compete with in which field, and how big your market share is.
At the same time, pricing determines the whole value chain. Different pricing needs to allocate different resources such as products, teams, services, environment and marketing.
At the same time, pricing determines the income and profit of enterprise operation.
Behind it stands the whole interest chain of the enterprise.
Including customers, employees, suppliers, landlords, shareholders and investors. So the pricing is not good, and it is basically scrapped.
02 the basic logic of pricing
Many people have a deep-rooted misunderstanding about pricing: the price must be determined by the cost.
For example, a catering training course costs 6.5438+million yuan, some people may be willing to pay immediately, some people may only be willing to pay 6.5438+million yuan for this course, and some even don't want it for free. The former thinks that he can create income of more than 6.5438+0 million yuan by studying this course, while the latter doesn't think so.
So the price has nothing to do with the cost, but with the value.
Consumers pay value, not cost. Consumers don't care about your rent, workers' wages and the cost of materials. They only care about what value my money can get.
What is the value related to?
The answer is demand.
Why?
For example, a bottle of mineral water is sold to 2 yuan in the supermarket, but if it is in the desert, it may sell for 100 yuan, so you grab it. Water is still this bottle of water, the value has not changed, but the relationship between supply and demand has changed. What does demand have to do with it?
The answer is, scene and desire.
Physiological needs are related to the scene.
Why? For example,
When you want to go out, there will be a need to take a taxi.
There will be a demand for popcorn only when watching movies.
When you get married, there will be a need to wear a wedding dress.
People have different needs in different scenarios and are willing to pay different prices in different scenarios.
For example, a bottle of beer can be sold in 3 yuan, 5 yuan, 8 yuan and 20 yuan. Beer is still this bottle of beer, but the scene is different.
Spiritual needs are related to desires.
For example, a bag may cost 500 yuan, and a lv can sell for 50 thousand. Is this related to the cost? Is it related to value?
Obviously not.
It has something to do with desire in human nature.
People's physiological needs are limited, but their psychological desires are endless. This explanation is very complicated, starting with the seven deadly sins of human nature. Speaking of Maslow's needs, we won't show them for the time being.
What does this desire have to do with?
The answer is cognition.
Why?
Humans are social animals, and their horizons are different in different circles. Different models have different values. At the same time, cognitive boundaries are different.
For example. When all the friends around you drive Porsche, you may feel embarrassed to drive this wide edition, and there will be a need to change cars.
If all the friends around you are carrying Hermes, you will feel that you can't get rid of these hundreds of bags.
When cognition is affected, new values are formed. At the same time, it drives inner vanity and desire, and desire drives demand.
Therefore, cognition determines desire, desire determines demand, demand determines value, and value determines price.
Let feelings fall with strength, and so on.
In essence, they are manipulating expression through the media, changing consumers' cognition and amplifying consumers' desires. Stimulate consumers to buy.
So the essence of pricing is to manipulate consumers' cognitive value. The consumer's cognitive value is the fundamental factor to determine the price. Because how much a thing is worth and how much it can be sold always depends on the consumer and his "consumer cognitive value", not the seller.
For example, Teacher Diao sold a bowl of sirloin to1685 million to buy a recipe, which is also a star test and a platform of Aoi sora. Beef brisket is still this bowl of beef brisket, but your value perception has changed.
So what does the consumer's value perception have to do with?
There are many answers. For example, personal consumption concept, psychological account, psychological perception, emotion, concept, sense of identity and so on. The cognitive value of consumers is related to two words: comparison. The anchor can be a product or something similar to a product.
For example, when the first tablet computer was launched, we didn't know how much it was worth, but we could imagine that it should be above the ordinary mobile phone and below the notebook computer.
Here, mobile phones and laptops are "anchors".
That is to say, when pricing, we must first know what similar products are available in this market and what the price is, and then compare our own products with other products to infer the price of this product. (The products of catering are the whole store, including product+experience+brand. )
This is called competition-oriented pricing.
What do you mean? That is, by studying competitors' production conditions, service conditions, price levels and other factors, according to their own competitive strength, referring to the comprehensive cost and supply and demand to determine the pricing method of commodity prices.
Therefore, the first thing that many old drivers price is to set per capita according to the market competition pattern and the consumption power of target consumers. The simple explanation is to set per capita first, and then try every means to allocate resources around this price to make consumers feel worthwhile.
Don't underestimate the word per capita.
Setting per capita is to divide customer base and market. How to divide the boundaries of consumers?
Where can I draw a line to get the maximum profit?
If the plan is too high and the customer unit price is too high, the number of consumers willing to pay will decrease.
If the line is low, consumers will increase and the unit price will drop. Maybe after a year of hard work, there will be no profit.
Therefore, don't underestimate the position of this line, which is followed by extremely complicated analysis and insight. Many enterprises fail because they have not drawn this line well.
Because high prices require high resources.
Low price requires an efficient and powerful supply chain to form a leading total cost.
Even if many people know this logic, they have no ability to combine and configure the whole value chain.
Therefore, many people can only calculate the total cost plus basic gross profit in pricing, and then openly face the market with a unified open price, hoping to facilitate the conclusion of the transaction through conscience management.
This is the cost pricing method that people often use.
There is no way to be at a competitive disadvantage in the end.
Pricing is based on the judgment of its own resources, the market competition pattern and the manipulation of consumers' price cognition to set the overall price, and allocate the whole value chain and cost structure according to the price.
03 pricing strategy
Even if many people understand the logic of pricing, they may still have no ability to control pricing.
Because the vast majority of goods are occupied by a few big businesses, even if we know so many pricing strategies and logic, we can't do it.
I have seen a seafood restaurant, which is not very profitable. The boss found a general manager and the boss trusted him very much. It can be said that he completely delegated his power to the general manager. The general manager is very anxious. Within a year, he continued to engage in low-price promotion, and his activities were vigorous, and his performance did improve a little. But by the end of the year, the financial accounting was blindsided and lost more than 2 million. This is more than before.
Sadly, the general manager went to work on time every day this year, worked overtime and left the office at night. In the evening and weekend, he also worked hard for the company's various entertainment, and his decision-making was also very courageous. All the employees respected and admired him, but in the end, he was kicked out of the company by the boss.
Therefore, the problem cannot be solved by setting the price lower, but in a fully competitive market. If enterprises blindly raise prices again, many old customers will fall into the arms of competitors, and the final result may be the same.
This is also the reason why many small and medium-sized enterprises are struggling in the Red Sea market and dare not tamper with it. Until the last departure.
Three price-raising strategies. The red sea is broken, get rid of the status quo.
High cost cognition
Why many brands are constantly tossing and upgrading, changing tableware, changing ingredients, changing decoration and so on; Advertise how scarce the ingredients you use are, how much money you have invested in research and development, how much effort you have put into the ingredients, and invite international master chef and designers.
The fundamental purpose of these practices is to improve consumers' "cost awareness" of products and make them feel value for money.
For another example, many consulting and planning companies go to A every time.
When Fang proposed, seven or eight people went.
Why go to seven or eight people? Through crowd tactics.
Heap high cost cognition. Hint at Party A, and see if we score seven or eight points.
People worked for you for months, and you spent your money.
Everyone's common sense is still: this thing costs so much, it must be very powerful, so I will pay more money. .....
Provide differentiated value and confuse price perception
Whether it is product innovation or value reconstruction, no matter what kind of differentiation. In essence, the ultimate goal is to confuse the consumer's price perception and make it impossible for him to compare.
Provide added value and raise value awareness.
This added value is both material and spiritual. The added value at the material level is related to other values at the product level. For example, improve services, experience, knowledge and so on. For example, integrating music and performing are all related added values to enhance consumers' value perception.
The added value of the spiritual level, that is, what we call brand.
The essence of a brand is a kind of social identity, including material and psychological trust and spiritual identity. For example, everyone knows that Hermè s handbags cost tens of thousands or hundreds of thousands, so people who use Hermè s can at least afford the money.
How to express "I pay attention to the quality of life and have the ability to use hundreds of thousands of bags"?
It is impossible to stick the passbook on your forehead every day.
It's simple. I'll buy a Hermes.
Similarly, how to express "I am a white-collar worker who likes simplicity, elegance and technology, and my economic conditions are good"? It's simple. Just go out with Starbucks membership card and Apple three-piece suit. Then, why would anyone be willing to scrimp and save for a few months and use the saved salary to buy luxury bags and clothes?
It is because they think, or mistakenly think, that they can enter this class with these "symbols".
This is actually a very stupid fantasy.
The external "symbol" is just a ticket. Even if you have this ticket and enter this circle without matching resources, what can you do?
You may not have heard a word in the conversation.
This is the illusion that "brand" brings to everyone.
In short, if you pay a sum of money to make you feel happy, cheerful and full, and you think it is worthwhile, it is worthwhile-although it is not worthwhile in essence.
This is the conclusion that "consumer's cognitive value" tells us.
This is why we should be a brand: we should not only have pricing power and premium power, but also establish a religion, form price barriers and shut out potential competitors.
Three pricing strategies to win competitive advantage.
Even if you know the underlying logic of pricing and how to use various price increase strategies to break the situation, you can easily solve the problem.
Question?
Obviously, this is not enough.
First of all, for high-priced products, if there is no reason to buy, other products can easily replace you, and your high price is a kind of self-satisfaction. Except for your own admission, consumers don't think your price is reasonable.
abstract
1. Consumers gain cognition through rational comparison and perceptual illusion. Cognition determines desire and demand, demand determines value, value determines price, and price determines cost.
2. Pricing must combine consumer value perception, competition pattern and own resource cost.
3. If the price is set low, it is necessary to raise the price, which can be recognized by piling up the cost. Provide differentiated value, confuse consumers' price perception, and provide added value to reshape consumers' price perception.
4. Enterprises enter the primary market through product innovation, and the higher the price, the better. Leave a good profit space for the imitators behind. This is called skimming pricing.
5. A fast-growing market. Whoever reduces the price first will have the market advantage first. This is the so-called price penetration method.
6. The price perception of the Red Sea market is solidified, and the profit margin of the whole industry can be improved by price anchoring.
Finally, an article talks endlessly about the doorway of pricing, and the price is not a single system. It must be attached to the whole value chain of the enterprise and exist independently in a specific market. If a butterfly in a small system flaps its wings, a tornado may be nearby.
Therefore, pricing is a strategy. Everything is the same thing.