Suddenly, a great demand arises for your product, will you increase your price?

It's money, it's profit, it's success, it's winning, it's business.                  BUT

 

 no decision can be made without market studies. No studies, stay on the safe side.

 

At some point if you increase the price you gain more customers. (No rules, Just good studies)

                                                                                                                                                            Thank you.

Yes, it will have to be done because if  product capacity is not enough then then some price will have to be increase and in dull market company will have to give some discount or scheme to sell the product as it will have to be sold so there is not any thumb rule in sales and marketing if there is good market then earn and capture market and market is not good then some different tricks will have to apply to sell out, but one thing also to be consider that if this demand is for just few days then it is advisable to not to increase the price as it is not trend of the market but hike for short term.

It depends on  your market space,no SANE company in the world would resort to this

No need to lose customers while making good profits of pushing higher volume.

At the same time a great demand will lead to an increase in prices if it remains for sometime. 

Hi,

In my opinion the production of the product needs to be stepped up in order to meet the upsurge in demand. Thus the increased supply  will meet the demand and thus will ensure that the product occupies a sizeable portion of the market in that particular product segment. 

At this stage the company can think of increasing the price. 

 

Thanks

Vijay

AMO

No that's not right to increase the price of the product with increasing demand for your product. It will make you opportunist. 

Rather, Some research should be carried out to find out the reasons for increasing demand for your product and decisions must be based on the findings whether to increase your price or make it constant. 

Price is an important aspect of any product/service that is decided/arrived at after taking in to consideration various factors such as Mfg Cost+Logistics Cost+Other Variable Cost+Margin of Business Associates/Channel Partners+Margin of Company itself..thus Pricing should not/cannot be directly linked to Demand.Approach of increasing price on demand can backfire giving rise to decrease in demand.Overall pricing is a very critical aspect that need to be finalised/changed only after taking in to consideration various factors.

Sir it depends. If I am entering a new market I can use this oppertunity to do gurilla marketing. So that I can kill the opponent and fully penetrate the market.

If my product is a matured product in the market I would raise the price ( if I am prudent I would also do some product differentiation even if cosmetic ) so that I can take maximum adantage .

If the product is ending the life cycle , the product is at the harvesting stage , I would raise the price to make hay while the sun still shines or make money when demand is still strong.

If there will be no threat of competitors in the market then I will surely increase the price. Different pricing strategies can be applied at different circumstances.

I agree with Haseeb Khalid Sales and marketing manager

No . That's not fair. I don't want to lose my customers .