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Price-Packaging Strategies for a Recession

During recession, fear runs rampant. You'll do anything to keep long lines of customers at your door. You might even cut your prices, which would cut your profit as well. It might be wise to think instead "what value am I offering my clients" and then communicate that value.

There is no power in the world of business that can offer you what-to-do advice. The signals definitely are mixed when it comes to how the marketplace sets prices. Discounters are doing well, and so are those who offer highest-priced goods and services.

First-quarter reports this spring showed that discount retail chains like Wal-Mart Stores and TJX Companies fared better than full-price retailers such as Macy's and Kohl's when it came to sales and profits during the first three months of this year.

The segment that caters to business with those labeled 'super-rich' is doing a stellar business for luxurious goods and like service offerings. More expensive import car-makers are faring better than makers of lower-priced domestic cars.

What does that mean for how to recession-proof your business? Consider the worth of your offerings and ignore what you charge for them. How you package your prices or fees is what will establish your brand as the smart value during an up or down economy.

If you package your products or services in a way that shows they are a good value for the price, then you are establishing a pricing strategy that answers the challenge of serving a demographic that is worried about this recession.

If your goods or services are designed to serve a luxury market, establish a pricing strategy that incorporates the words "smart value" in your marketing language.

Here are a few examples of how to incorporate price-packaging strategies to best serve your market:

- Think 'smart value.' Consumers would rather think in terms of a 'smart value' than 'cheapest' or 'most expensive.' Point out the smart value of what you bring to the marketplace, and phrase your marketing message to reflect that what you offer is the best value available for the price you are charging. High-end retailer Tiffany & Co. incorporates that strategy and so does budget-minded Target.

- Bundle up. Re-packaging goods or services, or bundling, can create a new way to do business without changing your basic price points. Can you offer two complementary products or services as a convenient (Remember: saving time equals saving money!) service to your customers? Dell Computers since its inception has utilized bundling in offering one-stop shopping for laptops, printers, service agreements, etc. Your bundling does not have to incorporate in-house strategies only. Luxury hotels have long partnered with luxury travel and/or adventure firms. Is there a complementary business that can be bundled with your luxury product or service as part of your price packaging strategy?

- Think extras. Consider adding and marketing 'extras.' If you offer seminars, can you offer the extra of a free e-newsletter subscription or mini-seminar?

- Embrace the I-cushion. Your I-cushion in this market is the Internet. Numerous studies have confirmed that bargain-hunters and high-end spenders alike are turning to the Internet in higher numbers each year to "shop" for goods and services. Don't scrimp on Internet marketing this year.

- Think 'unique.' Ultimately, what is unique about your business will count more than price. Your individuality is one of a kind, and THAT is what should show in how you market. What is different about your product or service?

During a recession, fear might become too big of a factor in your business. You can ride out this storm if you lean back into the tools you use to brand your business, to market it and how you observe other marketing trends.

Article Source: http://www.newagelivingarticles.com

Ruth Klein is a branding, marketing, publicity and time management consultant to law firms and business professionals ranging from solo entrepreneurs to the Fortune 500. As an award-winning business owner with a master's degree in clinical psychology, Klein brings her unique, results-driven insights, expertise and practical solutions to her law firm clients. For more information, visit www.ruthklein.com .

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