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Finding and implementing the right pricing strategy is critical to a company's success because at the end of the day the company will make its revenues from the products or services it sells to the customers at a pre determined price. The targeted customers must find the price of the product justified and this will induce them to buy the company's offering.

This is why it is important to recognise and implement the right pricing strategy otherwise the company won't be able to sell its products or services effectively and incur loss that can lead to the shutting down of the organization if not dealt with on time. I will be taking example of netlfix which comes under service. Now netflix follows a market penetration strategy.

They kept the cost of their subscriptions quite affordable when entering the market and once they gained a huge customer base and market share, they then increased the price of their subscriptions. Now since they already became such a big player in the online streaming service, customers readily pay the new prices of its subscriptions. The company still.offers new subscription at very affordable rates and increase this price with more use by the customers.

Producing appropriate pricing is constantly vital for a company. A constant pricing technique helps to preserve existing customers and also helps to attract the focus of brand-new consumers. Rates technique should rely on the buying capability, organizational brand name value and provider's power of a company.

Price should be established according to the manufacturing price, existing inventory, and accessibility of the supply chain administration of a company. Therefore, the prices approach is important to consider a firm's success. A constant cost attracts consumers' focus.

However, an inappropriate amount lowers the brand name's worth of a company. Furthermore, the cost of the product has to validate the quality of the product. To summarize, the value of prices technique over the business's success are as complies with:

Customer retention: Pricing plays a pivotal role in maintaining existing customers to guarantee business success. The price needs to certify the quality of the items as well as the service of the organization. It needs to warrant customers' capacity. The establishment of a consumer-friendly price is constantly beneficial to maintain customers.

Development of the target consumer base: The correct pricing approach helps to broaden the variety of target consumers. It improves the potentials of positive word of mount approach, which assists to enhance the base of target clients. Hence, organizations require to set rates after examining the target audience for an extra useful strategy for business success.

Boosts brand loyalty: Brand name loyalty if an organization can be improved with the efficient execution of a proper price approach. The top quality of the product needs to fulfill the price standard to make sure dependability.

The example of a product that is well valued is the equipping items of IKEA. IKEA sets costs after assessing the target audience. Thus, it embraces the medium prices approach to understand item demand and also market price. Later on, selects the utmost cost of the item concentrating on producing high quality and also consumer demand.

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Why is finding and implementing the right pricing strategy critical to a company's success? Give an example of a product or service you think is priced well and why.

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