There is a fairly high demand from buyers for the products being sold;

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It is important to understand that this pricing strategy is not aimed at the long term. It helps achieve short-term goals and is most effective when:


the demand for the product has low elasticity;

the seller of the product has the opportunity to successfully differentiate itself from competitors in the market for a long time thanks to patenting or constant modernization of the product;

The target audience correlates high cyprus mobile phone numbers database price with excellent product quality.

In order to win a certain market share, a manufacturing company can initially set a fairly low price for its product, making it accessible to a wide range of potential consumers. This will help to take a leading position in the segment, minimize possible rivalry between companies, and increase sales volume. As competition intensifies and intensifies, the seller can try to reduce production costs and thereby reduce the selling price.

Another possible option is to achieve leadership in the industry in terms of quality. This will allow you to set a higher price on the sales market. If competition on the market is minimal or practically non-existent, the price of the products sold may change depending on the demand for them. It is important not to forget that increasing the cost of a product is advisable if it is well recognized and in demand among the majority of the target audience.

To achieve long-term goals when setting prices for its products or services, a company can use a strategy of strong implementation. Its use is appropriate when:

the company's products are in great demand among representatives of the target audience;

demand for products is highly elastic;

a reduction in the price of goods sold is extremely disadvantageous for competing firms in the industry;

potential consumers do not associate the low cost of a product with its low quality.