Some economies are price sensitive, that is, the demand is expected to change drastically with the increasing price of the product. Price sensitivity may vary from industry to industry, depending on the geographical area, need and personal choices, and emotions of consumers. Therefore, setting the right price becomes a task of prime importance. In this article, you’ll understand how to price your product and deal with a price-sensitive market.

Pricing is one of the key factors on which the selling of your product or service directly depends. If the price is too high, chances are that it may not be purchased by consumers. On the other hand, if the price is too low, it might not cover the expense involved in generating it which makes the revenue fall below the cost involved.

When we talk about the Indian Economy, it is one of the most potential economies. Surviving in it seems to be easy, however, it is not. While the profit from selling a product seems to earn a lot of reviews here, the challenging factor is the price-sensitive behaviour of Indian Consumers.

In foreign companies, marketing strategy begins by first stating the initial price and then stating the add-ons to reach the final price of a specific product or service. However, in Indian Market, you initially have to state the final price and then validate it by stating what benefits it brings itself.

To deal with such a price-sensitive economy, some tactics might help you get through:

1. Showcasing your Brand value:

Building the brand positioning, name and value might seem hard. However, it is immensely vital. When the brand has its name and trust, customers do not tend to hesitate in opening up their wallets and purchase. To ensure that in a price-sensitive market, a producer needs to make sure that the quality and consistency of the product remain. In some situations, it is even considered that a product with a higher cost is a product with more value. So, pricing your product genuinely is a major task.

Another important factor is the durability of the product. When your product is more durable than that of the competitors offered at a lower cost, customers will probably choose the one that stays longer.

2. Offer Benefits and Highlight them!

Consumers get more easily lured to purchasing a product when they are offered benefits for purchasing them. Know your customer and provide them benefits. Such benefits can be of two types- ones that come within the product, and ones that come along with the product.

We can refer to various examples. When Tata Tea came up with the combo of offering a Good Day biscuit along, it helped in attracting customers. Such combos are considered beneficial by people. These benefits tend to increase the demand but one thing to ensure is that such combos do not fall hard on the pocket of the producer. It is also helpful when you describe the characteristics of your product, go on and advertise regarding the same, and describe the ingredients and the qualities of your product before customers.

3. Always there!

Making your customer feel valued is integral to your brand. Providing excellent customer service, responding to the customers timely, listening to their feedback, implementing changes when needed, appreciating customers, and solving their problems form the core of upright customer relations.

Write and upload blogs frequently to maintain a consistent bond with the customers. Choose to write on topics that trend or serve the need of the hour for the customers.

4. Compete healthily! Grow!

The healthy way to compete is to regularly monitor the activities of your competitors to engage in healthy competition. Bring new and better strategies. Between all of that, do not consider under-pricing before thinking twice. Also, never sacrifice quality because that keeps your brand value alight.

It is important to have pricing intelligence. One must also stay up-to-date with the pricing strategies.

Apart from everything, the biggest achievement is to never stop and keep going. With all of that being said, I hope that the article has helped you in finding the tricks to avail and succeed even in a price-sensitive economy.