In a marketing strategy, when all the activities to bring out a product are decided, the conclusion part is wrapped up with pricing. As an element to generate the revenue of a company, pricing foretells the fortune of a company. The price of a specific product is determined by the factors that involved in facilitating the business to earn the profit.
Factors implicated in pricing
Price of a specific product may vary from one location to another. This is because of the leverage spent by the company to distribute the product to its customers in different locations. Price of a product sold in the same location may also fluctuate from time to time. Some of the factors could be logistics, tax and import duties, product demand, transportation, income, sales target, and competition at the regional level.
For example, a pulses company based in location-1 sells red chilli at Rs 40 per kilo in location-1. When the same product is exported to a distant location-2, the price is escalated to Rs 70 per kilo.
Geographical feature plays role in pricing
The price of the same breed of chilli is increased due to the huge cost of transportation. There are two ways of transportation from location-1 to location-2 – by vehicle road and by flight.
There is a long distance roadway between location-1 and location-2. First, the product will be removed from the warehouse. It will be then allocated to distributors outside location-1. Every time the logistics truck crosses the border of a state, there will be tax collecting toll booth.
Sometimes, the transportation may face other problems created by the natural calamity like flood, and roadblock caused by the landslide. This could force the logistics to adopt flight cargo services which are too expensive. The price could be doubled in such incidents.
Trouble in pricing with traditional catalogs for regional market
A company may face a series of an unhinging situation due to price fluctuation in the regional market. This could create an inconsistency in pricing. As an example, an apparel and garment company wants to sell a range of designer shirt to different regions. It has several distributors across the country. People in a cold-climate location may demand woolen shirt, while the customers in warm-climate location want the ones only made of cotton. Meanwhile, some buyers in cold-climate location may want cotton shirts and a few people in warm-climate location demand woolen shirt.
The company may publish separate catalogs for wholesalers, distributors, and retailers, for each of the regional markets. Creating paper catalogs for several regional markets could be costly and it is a a waste of time. The salespersons have to travel long distances and carry a load of catalog in bundles to their buyers. Besides, there may be price fluctuation during the sales. At this point, all the catalogs would be discarded and published new ones, pushing for unnecessary spending.
Make pricing easy with digital catalog
Online catalog builder Catalog Bar covers all kinds of perceptions in catalog generating. With this product catalog, users can add and remove fields and categories according to their needs. They can easily arrange the set of products and prices for different locations on a single catalog app.
E-catalog allows users to create product lists under which, they can add separate prices for different distributors belong to different locations. They can simply highlight the information in the catalog so that multiple users can view it. With this order management software, users can rearrange sales order and avoid inconsistency pricing at the time of price fluctuation. They can edit the price and details of multiple products if there is a situation of stock limit or surge pricing.
Share your e-catalog with distributors
A digital catalog can have multiple users on one B2B e-commerce platform and nullify all kinds of miscommunication between them. It helps the users coordinate each other by simply accessing to this online order processing software. With Catalog Bar, the users can create multiple users groups. For example distributors from location-3 can be added in “location-3 distributors” group or wholesalers in location-4 in “location-4 wholesalers” group.
With this dynamic content management system, users can manage multiple users for their accessibility to the catalog. They can permit or block the specific group of users from viewing the products and prices meant for other groups. As an example, users can allow only distributors from location-5 to view product information for location-5. Other distributors can be blocked from viewing the same.