The following solutions are available to improve the existing product line:
Downward Matrix Stretch: Adding a low-cost product to an existing line will increase sales and attract new customers. A great example of this strategy is Mercedes' collaboration with Swatch to create an affordable $10,000 compact car.
Upward Matrix Stretch: Add high-end products to a company's product line. This is very effective for organizations seeking respect and market relevance. An example of this is General Electric, which attracted wealthy customers by adding a premium food processor to its product line.
Two-way matrix stretching: adding high-priced and low-priced items to a product line will be a great opportunity to expand the range of a company whose audience has only recently been identified.
In addition to expansion, improving a sales line is also possible through trimming it. Consciously review your product range and remove unprofitable products to improve results.
4 Product Line Pricing Strategies
The formation of the value italy email list expression of a trade line involves offering a range of goods or services with different prices, taking into account the desires and perceptions of consumers. This approach has two key advantages. Firstly, differentiated prices help enterprises increase their presence and influence in the market. For example, a cafe can offer drinks (juice, tea) at affordable prices to attract an audience to the coffee shop, focusing on the sale of expensive products. Secondly, this approach allows companies to target buyers with different income levels: from low to high.
There are 4 key strategies for forming the cost of goods:
Bundle pricing involves bundling several products together and selling them at a single price. For example, a hotel complex might offer its customers a bundled service: accommodation, airport transfer, and free breakfast.
The leading role in setting the price is in the discounts offered on the goods . This attracts customers to the outlet.
Another clever strategy used to attract customers to a store or website is to use the bait of big sales on limited items.
Sales
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A value capture strategy is a tactic in which a popular product is used to increase sales in a given category. For example, a product may be sold at a loss (at a very low price) in order to attract more customers to the business.
Very often we encounter such a situation in SaaS products, when companies offer a subscription to specific services without payment. Such an option includes only a few functions to demonstrate to consumers the capabilities of the service, software.