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The price turns out to be an ever stronger impulse sensor in the product and brand selection - and is the earnings driver number 1. There is hardly an issue, at which such a large profit potential is squandered due to lack of systematic analysis. But already at a very early stage of product development the modern market and opinion research can help to determine those prices that fit your products or your range and exploit the payment acceptance of your target group optimally.
In the foreground of price fixing it is to avoid two cardinal mistakes: Is the price too high, the product would be considered of too few potential buyers. On the other hand a too low price means that potential profit margins are not fully realized. In addition to sensitivity thresholds, elasticities and price-market/profit-relations the signaling effect of the price is also taken into account. Conclusions be drawn about the quality of a product based on the price, for example. The price must therefore always be accompanied by the positioning strategy of the brand.
With prcing-AGENT Marketagent.com presents a tool that supports decisions for price optimization.