Pricing and Promotion

Pricing—this is a delicate matter that requires many factors to come into the right pricing decision.  All must be taken in to consideration. Generally speaking materials, labour and overhead are applied in the equation and of course the mark-up, and are still subject to changes due to discounts and promo’s you can provide.  Pricing decisions is a very crucial that a mere miss-price could cause the company to lose its game in the industry.

Promotion—What will I do to reach out to my clients? Will I use traditional media such as print and television? Or maybe through the radio? How about flyers and brochures? Or will I go technological and make a website?  All these factors can dramatically increase or decrease your share in the market.  Promotion is all about making potential customers aware of your product in the most effective and cost-efficient manner possible.

Here are some simple ground rules in promotion: (a) Indirect approaches, such as Public Relations can be more effective than 'above-the-line’ activities like advertising; (b) For many new businesses, local coverage is easier and may prove to be more effective at generating sales; (c) Looking at how others promote their products and services can be a key for your promotion to be successful; and (d) Never underestimate the effectiveness of small-scale advertising in local papers, bulletin boards, and directories.

Having a big budget is always the key for a successful promotion.  More so, lack of resources can even make the organization more creative in getting out messages that can catch the customer's eye and generate a response.