Focus on a robust B2B pricing strategy

New Ideas in MarketingEssential news for marketers, summarised by YouGov
March 30, 2021, 4:08 PM UTC

The process of setting and communicating prices to businesses and organisations that the company sells to is known as B2B pricing.

There are three main types of B2B pricing strategies: Cost-plus pricing, competitor-based pricing and value-based pricing. While cost-plus pricing is the most straightforward B2B pricing strategy, it has certain limitations. Cost-plus pricing can provide a consistent rate of return and does not require market research or competitor analysis.

A competitor-based pricing strategy can help brands maintain their market share. But, this strategy is not effective in the long-run. Value-based pricing is a more research-based, long-term strategy.

Though value-based pricing can help increase the brand’s profit more than the other two pricing strategies, it is time-consuming. All these strategies are effective depending on the business objective. Marketers need to consider their product type, market growth dynamics and customer traits to create a robust B2B pricing strategy.

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