The failure of a beauty salon's pricing strategy is often due to ignoring the three key factors of hard cost, customers, and competitors.
This is caused by marketers ignoring hard costs, finance people ignoring consumer value and motivation to buy, and not gathering enough information about competitors. Making good pricing decisions requires gathering information on hard costs, customers, and competitors. First, we need to understand what the incremental and avoidable costs associated with a particular pricing decision are, including the incremental variable cost of sales including employee performance, customer service, and technical training support. Secondly, we need to identify potential customers and understand why they are buying this product and what factors influence their sensitivity and willingness to buy. Finally, we need to identify competitors and understand their pricing targets, sales volume, and profit margins, as well as their strengths and weaknesses. In the data information collection phase, these three steps need to be completed independently to avoid bias and misjudgment.
I'm Zhao Shen, and in order to make more accurate pricing decisions, we need to fully understand the hard costs, customers, and competitors. If you have other better methods, please leave a message in the comment area to share!