From the course: Pricing Strategy Explained

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Pricing variable 2: Demand

Pricing variable 2: Demand

From the course: Pricing Strategy Explained

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Pricing variable 2: Demand

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- The next thing to influence your pricing strategy is demand and demand has actually a big correlation between the amount of demand that a product or service will have and the price that you're actually going to charge for it. Now I don't want to get into a bunch of economic theory about supply and demand, but it is important to introduce some of these concepts. So it goes without saying, but I do want to say it that if in fact you have high demand for a product or service typically you have more flexibility, you can be more aggressive with your pricing because customers will pay more. And it goes without saying that when you have lower demand, you're going to have more pricing pressure and so you're going to have less flexibility in terms of being able to manipulate pricing or to bid pricing up in that case. So a couple things that I want to make sure that you're aware of as well is that you have to pay attention to demand…

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