The Ultimate Guide to Pricing Strategies

PRICING STRATEGY ANALYSIS

INTRODUCTION
• Pricing services are considered to be an important aspect
that helps in proper management of the operations of
different organizations.
• Competition in the industry can also be faced efficiently by
the firms with the help of proper pricing strategies.
• The prices that are set by the organizations are mainly
based on external environment based factors (Baker,
Collier & Jayaraman, 2017).

Comparing different pricing
practices
• Pricing of a product is a major part of the marketing
strategy that is developed and implemented by an
organization.
• Cost-plus pricing is implemented by calculating the costs
and adding a mark-up.
• Competitive pricing is applied with respect to the changes
that take place in the competition (Hinterhuber & Liozu,
2019).

Comparing different pricing
practices continued ….
• Value-based pricing – The value based pricing strategy is
implemented with respect to the value that an
organization provides to the customers.
• Price skimming – The high prices are set which are
further lowered based on the evolving market.
• Penetration pricing – The low prices are set by an
organization in order to enter the competitive market
(Baker, Collier & Jayaraman, 2017).

Comparing different pricing
practices continued ….
• The pricing strategies of the organization are
implemented according to the type of business.
• For example, value based pricing is implemented by the
entrepreneurs who wish to develop a different position in
the industry.
• Competitive pricing is implemented by the firm for
maintaining their position with respect to changes in
external environment (Sen & Joseph, 2016).

Technology that has been
implemented by the business
• The business organizations that have been discussed in
the provided case study operate in the pest control
industry.
• The organizations that operate in this industry have
implemented practical pricing strategy.
• The companies can aim maintaining healthy competition
by improving the profit margins (Gooch, 2001).

Evaluation of distribution
channels
• The distribution channels that are a part of the pest
control process includes the process of pre-treatment.
• The customer services that are provided by the sales
people are another important aspect of the distribution
process that is implemented by the pest control
organizations (Gooch, 2001).

Key issues related to pricing in
the industry
• Competition that is faced by the organizations in pest
control industry is a major issue related to their
operations.
• The cost factors related to the visit of the technicians are
able to influence the operations pest control firms in a
negative manner.
• The loss of image that is faced by the pest control
organizations due to lack of proper services provided by
technicians can prove to be a major issue for pest control
firms (Gooch, 2001).

Rating the attractiveness of the
industry
• The pest control industry currently consists of different
organizations that aim at providing the best levels of
services to the customers.
• The word of mouth advertising and referrals that are
received by the pest control organizations from their
customers are considered to be a major aspect related to
levels of competition.
• The value of services that are provided by the technicians
can enhance the worth of the firms (Gooch, 2001).

Recommendations to the
competitor
• The major recommendation that can be provided to the
pest control organizations is mainly based on the
development of an efficient technical team that will
provide best levels of services.
• The organizations have to aim at maintaining their image
with the help of enhancement of the quality of services
that provided to customers.
• The prices of different services can be maintained with the
help of proper planning.

Conclusion
The presentation can be concluded by stating that pricing is
the most important aspect related to the operations of
different pest control organizations in the industry. The
organizations will be able to maintain their image in the
industry with the improvement of service quality in an
effective manner. The pre-treatment is also an important
part of the service quality that is offered to customers.

References
• Baker, T., Collier, D., & Jayaraman, V. (2017). A new pricing strategy
evaluation model. International Journal of Operational Research, 29(3),
295-316.
• Gooch, H. (2001). Practical Pricing is Key-It's quality, not cost, that will
keep customers long-term. Pest Control, 69(9), S17.
• Hinterhuber, A., & Liozu, S. M. (2019). Pricing Strategy Implementation:
Translating Pricing Strategy Into Results. Routledge.
• Sen, S., & Joseph, N. (2016). Global pricing objectives and
strategies. TRANS Asian Journal of Marketing & Management
Research (TAJMMR), 5(12), 43-49.