Premium pricing

With the high price strategy ( high-price policy or premium policy) is trying to achieve in the long term as possible high-set prices. The reasons for high prices exclusivity is taken. Frequently luxury branded products ( premium brands ) are offered in high price segment (for example, Rolex watches, Ferrari cars or designer clothes from D & G). The price elasticity is very low in these products, so that the - affluent - buyers not or hardly react to price changes.

The high-price strategy in technical sales

The basis of the high-price strategy is a structured approach in technical sales. The goal of the high-price strategy is to achieve the highest prices in the relevant market. This maximum achievable rates, however, are tied to the market price, but are usually a little about it. Thus, high-price strategy companies have higher profit margins than their competitors in the market. In technical sales, the high-price strategy is based primarily on unique features, quality and innovation of the company as well as the associated image. The external communication of high-price strategy companies is limited mostly to the concepts of quality and innovation. The high-price strategy is indeed used by many successful companies, but never communicated externally. The companies fear a loss of image. For a company to achieve the highest prices in the market permanently, certain conditions must be created.

Strategic approaches to high-price strategy

Motivation of employees

Thus, the sales staff can fetch higher prices than your competitors, the target must be in sales, customer supreme power to offer so as to achieve the highest price. All employees of the company must recognize the deeper meaning of the strategy and be motivated for the target. This is an ongoing process and therefore must be anchored in the company's philosophy.

Customer Segmentation

This is a purely strategic approach, which must then be interwoven with the daily operations in sales. Customers are divided not only on sales or contribution margin in ABC customers, but also by their own growth potential. The target market is analyzed. Based on this analysis, the focus is fixed on sales to certain strategic customer segments.

Strategic radar

Here are permanent competitive analysis and customer surveys in the foreground. These surveys are used to establish unique features to selectively dissociate itself from competitors. Each employee must recognize unique features and able to bear in their businesses at points of sale ( POS ). This can take place continual performance improvement of our products and services, CIP ( Continuous Improvement Process ) is necessary.

CRM Integration

The CRM system should be able to map a customer segmentation as described above. A further object of the CRM system is an integration of the strategic and operational objectives. In technical sales decisions are not normally taken by individuals, but by a group of people. Thus, all individuals that contribute to the decision-making can be identified. Individual strategies for each of these persons from the decision loop help to influence the decision-making process better. This fact must be taken into account, the CRM system also.

Operative approaches the high price strategy

In the operative part of the high price strategy, the classic sales practices employ. However, it should be noted here that the requirements to the sales representatives are quite high. That is, the phases of the sales pitch is an important success factor for higher prices. Only if the customer accepts a higher benefit for himself, he will be willing to pay a higher price. Therefore, structured sales processes are important. In the first step, customer-focused individual strategies will be developed. Thereafter relations with certain people are targeted constructed and solidified the target customers. The generic term " customer relationship management " the people are regularly contacted to establish a relationship of trust between customer and supplier. The focus of all activities is the customer benefit and the associated construction of unique features, because these have the greatest impact on the pricing.