Hospitality Marketing and Management is recently the buzz in
the world of service marketing.
Hospitality major examples are the Restaurants, hotels, and medical
hospitals are always the example for hospitality cases.
At the moment I will impart the aspects of pricing
strategy mix for hospitality type of business.
Pricing is the important part of the business that the
company can create profit. If pricing
strategy is not planned well, then the problem of over pricing or underpricing
will malignantly cripple the whole product marketing image. As such, from the start of your business, one
must consider right away the exact pricing for the whole services of the
business
ASPECTS TO CONSIDER IN HOSPITALITY PRICING MIX:
1 Pricing practices- this stage is when the marketing
department must research the standard pricing of the industry to enable the
marketing personnel to calculate the right price of the product in accordance
to the marketing rank of the company’s product.
Sometimes, getting the prices of your counterparts is hard to acquire
most especially if your industry is always in a price deal war.
2 Basis of pricing- Is when your company can have the
standard price of the industry from your price research from other companies,
then you have the upper-hand in setting your new price strategy and business
deals with your primary and secondary customers.
3 Pricing objectives-
This part of the price planning includes the financial objectives and
maximization of profit where the company’s marketing personnel must consider
all possible cost and probable risk cost that may occur during and after
production. Return of investment must
always the guide in price stabilization in relation to the cash flow of the
firm.
4 Cost base pricing- implies to the actual cost being incurred
during the whole business operation.
Profit maximization will usually occur when the demand is equal to the
supply of services rendered or goods.
Failure to balance the gap between supply and demand of the firm will always
affect the whole operating cost of the company.
5 Competitive pricing- refers to the price war and
competition with other companies with the same industry. Proper price information is needed to determine
your price stance in competition with other companies. Your product or service market category will
usually determine your pricing stance.
6 Market demand pricing- refers to the actual demand of the
customers towards the service or product.
This system is following the economic theory of supply and demand where
the demand of the product is relative to the supply or vice versa.
7 Customer pricing- is a relative theory application of
market demand pricing with market demand pricing. If the product is still on its maturity stage
in the market, the usual eager buying attitude of the customers will elevate the
actual price. But when the buying
attitude of the consumers will subside then price will tend to be lower.
In overview, price
strategy is an aspect of marketing that will determine the market value and
credibility of your product. Your past,
present, and future price tags will affect
your whole market reputation.
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