The “four secrets” of the technology giant Apple used to set prices of their product lines.

There is no company, large or small, that does not face challenges in determining prices and suitable profitability margins for their products and services today. However, some manage their prices better than others.

Ariel Baños explains that “…The flagship brand in the world masterfully uses price management tools. What lessons can we apply to our company? “.

By Ariel Baños
President and founder of Fijaciondeprecios.com

1. How to sell to customers who are seeking a price

Beyond being one of the most admired brands in the world and having a huge number of loyal customers, Apple does not escape the challenge of selling at higher than average market price. This price level excludes many potential customers. What was Apple’s answer to these situations? ¿Promotions? Special discounts? ¿Liquidations? Definitely not.

Apple uses a strategy of segmentation by product lines to reach customers who are looking for price, but within the Apple brand. There is a line of products called “Refurbished” consisting of original Apple products that have been used, and then refurbished by the company to be sold as second hand items. This product line follows the company’s quality standards and even has an Apple guarantee for one year.

Apple Lesson 1: If you need to reach price-sensitive customers lose the widespread discounting. Think about options to segment, in order to reach price seekers in a targeted manner. For example offers of products or services that are attractive only to this type of customer, such as second lines, coupons, outlets or discounts days or special times.

More to follow…..