From the course: Pricing Strategy Explained

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Pricing variable 7: Margin

Pricing variable 7: Margin

From the course: Pricing Strategy Explained

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Pricing variable 7: Margin

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- And our next price influencer of course is margin. Margin is very important to how you're going to actually use your pricing strategy. So, first question of course since we've already gone through all the margin calculations but you have to ask yourself what is your margin. And we have to determine whether or not you have a high margin or a low margin. And we can set some targets here. If you've got a higher margin like 70% or above then you've got enough room. It gives you much more pricing flexibility; you can force the price up. If you've got a low margin it's going to be a lot more competitive, you're going to be a lot tighter, you're going to have a lot less room in order to breathe as it relates to your pricing strategy. It means you're not going to have a lot of room in which to move. So you have to keep into account margin and how that plays into your overall pricing strategy and how it gets influenced by…

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