Price Strategy in the 7P\’s: How to Price Your Service for Maximum Profit
Pricing is a key element of the service marketing mix. Setting the right price can have a significant impact on both your competitiveness and profitability. Businesses must consider factors like cost, demand, and customer willingness to pay. Pricing Models: Penetration Pricing: Initially low prices to attract customers. Premium Pricing: Charging a high price for a high-quality service. Dynamic Pricing: Prices change based on demand and time. Example: Airlines use dynamic pricing to adjust ticket prices based on demand, time, and seasonality, optimizing revenue.