A company like ValueMags needs to go through price adjustments in order to account for various customer differences and changing situations. ValueMags is a successful company that sells different magazines of various niches. There are seven different price adjustment strategies which include discount and allowance pricing, segmented pricing, psychological pricing, promotional pricing, geographical pricing, dynamic pricing and international pricing.
Discount and Allowance Pricing:
This involves a straight reduction in price on purchases during a stated period of time or of larger quantities. A company like ValueMags team can adjust their basic price in order to reward customers for certain responses, such as the early payment bills, volume purchases, and off-season buying.
Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs. They adjust their prices to allow for differences in customers, products, and locations. How this works is different customers pay different prices for the same product or service. This isn’t the best case for the ValueMags company unless they are in a different country perhaps.
This is pricing that considers the psychology of prices, not simply the economics; the price says something about the product. This has to do with consumers seeing a higher priced product as higher quality.
This is what their company needs to do in order to keep up with competition they can temporarily price products below the list price and sometimes even below the cost in order to increase short-run sales. When it comes to promotional pricing, a company like ValueMags would do this in order to offer promotional prices to create buying excitement and urgency.
This means you set prices for customers located in different parts of the country or world. Geographical pricing for any company is often used due to them servicing industries all around the globe.
When the ValueMags team can adjust prices continually to meet the characteristics and needs of individual customers and situations, it allows companies to get away from fixed pricing with the new trend of dynamic pricing.
For the ValueMags marketing team, they sometimes serve clients internationally therefore must decide what prices to charge in different countries. Since they are a company that serves several industries internationally it is important to do so and keep up with prices in other countries.