costs and perceived value by the customer; the variation in input prices; the competition; and market expectations. "In the baking sector, for example, fluctuations in the price of flour and other ingredients can directly impact profit margins," he/she/they highlights.
To assist entrepreneurs with pricing, the specialist shares five tips based on her successful journey:
1. Analyze your costs in detail."It is essential to consider all the costs involved in production, from raw materials to operational expenses. Only with a clear view of these values is it possible to set a price that covers the costs and provides profit," he begins.
2. Study the market and the competition."Understanding competitors' positioning and market trends allows you to adjust your prices competitively without compromising quality or brand perception," he lists.
3. Consider the customer's perception of value."The price should reflect the value the customer perceives in the product. Investing in quality and differentiators justifies higher prices and fosters customer loyalty," he says.
4. Use technology to your advantage."Financial management tools and sales analysis are essential to understand consumer behavior, forecast seasonal demands, and strategically adjust prices. For example, using detailed reports to monitor the impact of price changes can help ensure decisions are based on concrete data," he explains.
5. Review and adjust prices periodically."The market is dynamic, and factors such as inflation, input costs, and changes in consumer behavior require constant revisions to the pricing strategy. Staying updated is crucial for the sustainability of the business," he concludes.
In short, implementing a well-founded pricing strategy is at the core of business success. "The main lesson is that pricing should not be based solely on competition or intuition, but rather on a careful analysis of costs, added value, and brand positioning. Testing different approaches and maintaining constant monitoring are essential practices to keep a profitable and growing business," concludes Marcela Fernandes.
