A specialist warns entrepreneurs against copying the prices of competitors' products in the market
Fawzia Al-Qahtani, a project researcher at the Social Development Bank, warned business leaders against neglecting a mechanism for borrowing products and copying commodity prices from the list of competitors in the market, bearing in mind several reasons, the most important of which are: different customers, marketing methods and content.
Al-Qahtani said during a remote meeting organized by the Asharqia Chamber represented by the Business Women Center in cooperation with the Social Development Bank, Sunday, October 18, 2020, entitled "Product Pricing"
That the price is the value given to a certain good or service that is expressed in monetary terms, so the benefit that the consumer gets from owning a certain good or service is expressed in the form of a certain value that is translated by the business in the form of a specific price that the consumer pays a price for this benefit, and thus The price paid does not reflect the physical components of the commodity but includes many other aspects such as intangible efforts, the goodwill of the product, and the total services associated with the sale of the good or service.
Al-Qahtani explained that borrowing products or services aim to maximize profits so that the goal of the marketing policy in maximizing profits can be achieved by trying to obtain a high-profit margin instead of relying on large quantities. It also aims to maximize sales so that the goal of the marketing policy in maximizing sales can be achieved through The institution follows the policy of low prices as it reflects the institution’s desire to reach the largest possible segment of consumers and maximize its share of the market, in addition to keeping pace with the market, such as the institution resorting to monitoring the prices of competitive products and the development of consumers ’purchasing power and trying to adopt a price level close to the prices of competing products in a way that allows development the sales.
Al-Qahtani advised business leaders and entrepreneurs to pay attention to pricing and its mechanisms, as a good price is a price in which you avoid bad methods and take into account most of the factors affecting profits and sales, and therefore the first step must be to determine the most expensive competing product in the market compared to your product, its marketability, how the market will receive its price, and the step The second, which is one of the good methods of pricing, is not to put many zeros in the price of the product, instead of 20 riyals, you can change it for 19 riyals, which is one of the old ways that companies follow to influence the buying decisions of the consumer, and the third step is focused on developing the product and promoting it according to a time plan Specific, and this is a good way to increase sales and market the product. If the product is worth the price that was actually set for it, the buyers will market it, by talking about its quality.
