For decades, our selling practices have been based on selling a product rather



than helping buyers in making a decision that ?how to buy?. Indeed products/services get sold when sellers pitch/present the product well. Or they get sold when sellers create great personal rapport with prospects or when the script is exceptional. But buyers buy using their own intricate and unique buying processes that sellers have had no way to understand.

We might understand the need, or how our product fits into a prospect's environment, but because we don't live in our client's culture, we have no way to directly influence what goes on internally for our prospects to reach a purchasing decision. Historically, sellers were required to give prospects the complete set of facts about their products. We didn't have access to the types of branding or graphic possibilities we have today, not to mention the Internet. Now, buyers have access to as much information about any given product that sales folks do?more, in some cases, as they can peruse the net and garner all possibilities. Product or service pricing on the Net is not as critical as many of you have heard, yet these pricing techniques are important marketing components and should not underestimated.

Right pricing management accompanied with proper marketing strategy could raise your profits sky high or bring about lost opportunities and substantially hamper further development. Here I would like to share the pricing techniques with you in order to maximize cash inflow and minimize happiness outflow Competition makes the business world go round. Any product or service you desire to market should be market-checked and compared to those, which are most similar to yours. The main three parameters that should be defined and analyzed include market niche, demand and competition. The direction of your analysis and result should be: The developing of the virtual picture of your "usual" customer. The most progressive pricing policy is dictated by Market.

The job of online business is to listen and implement the most beneficial pricing techniques. Listen to online market or be squashed. Given your Market analysis is ready, it is assumed that you have already heard the market out. "Cream skimming" implies high price on newly invented and promoted product. The market is fresh; the product is innovative and "hot". The online business cycle for that strategy is usually from 3 months to 1 year.2. Market penetration is more appealing to the majority of start-up businesses. The measure off growth, business reliability building, and long term prospective are the main components of this pricing strategy.

As a standard it implies the same or lower price level that exists on the market. Know the "uncertainties joys" of your targeted niche. In two words there is a considerable difference of price acceptance in offering video course on monetary trading to institutional investors and video course on conducting an interview to the unemployed. This tactics may be implemented by offering the "core" of the product for the lowest price possible. Second price level is the standard version of the product for nominal price and one or even two "extended" high-priced versions for those who don't mind spending supplementary several hundred bucks for more colorful package.