Pricing and Discounting - Eric Tjoeng, CAD Partners

Pricing and Pricing Strategy Calculator - Eric Tjoeng was a panelist at the March 2012 Chamber Breakfast focusing on sales and marketing

1. Regular small increases are much easier to achieve, just like McDonalds, 40 c or 50 c at a time and the impact to your profit is great
2. Beware of margin squeeze when you can not pass on price increases
3. Focus on service, convenience and solution rather than pushing a product or service and compete on price
4. Discounting is not a great idea, In the scenario where the gross margin is 30%, dropping the price by 10% will require 50% volume growth in sales to maintain the current gross profit, which is a big task. 

Contact Eric for a copy of CAD's  “Pricing Strategy Calculator”.

Any member wanting to talk to CAD on the following topics can also contact Eric on the number below:

• How much they should or can spend in Marketing, and what would be the expected bottom line outcome/Return On Marketing Investment.
• How to measure marketing activities and Return On Marketing Investment

Eric Tjoeng
Joint CEO - CAD Partners
www.cadpartners.biz/etjoeng
Mob: 0401 990 200 Phone: 1300 362 436
Email: erict@cadpartners.biz