What to Do When Prices Increase
- Dena Vick
Successfully forecasting sales projections is becoming increasingly challenging.
With talks of tariffs that could lead to increases in stable prices, brands and retailers must ensure product’s features are communicated and are visible to the right audience.
During strained economic times, companies often lower prices. However, this tactic may no longer be an option. Strategies will shift based on the product’s value proposition.
A key part of marketing strategy, the product value proposition is a pithy statement explaining product benefits and the reasons why customers should choose it. As Warren Buffett simply stated, “Price is what you pay, value is what you get.”
The cost/value equation is an intrinsic part of the consumer’s thought process. The formula compares the perceived benefits of products to perceived costs and is used to decide what to purchase.
CLICK TO FINISH READING
