[[{"@context":"http:\/\/schema.org","@type":"Answer","text":"Price management is defined as the process of setting, adapting, and optimizing prices for goods, products, and services. The process involves determining the cost of goods sold (COGS), analyzing the competitive landscape, considering the target market, setting clear pricing objectives, choosing an appropriate pricing method, and routinely monitoring and adjusting prices. In fact, an effective pricing management discipline can lead to increased profitability, growth in market share, improved customer satisfaction, enhanced brand awareness, and better decision-making.","name":"What is price management?","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#Answer1"},{"@context":"http:\/\/schema.org","@type":"Answer","text":"Commodity pricing refers to the specific price management strategy for goods, products, and services \u2013 considered commodities \u2013 which are standardized and interchangeable in quality. These prices are primarily determined by supply and demand and are influenced by several factors such as market volatility, competition, consumer trends and preferences etc. Effective commodity pricing strategies involve market research, using an application like a pricing software, flexibility, and fostering strong supplier and customer relationships.","name":"What is commodity pricing?","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#Answer2"},{"@context":"http:\/\/schema.org","@type":"Answer","name":"What are the most common pricing strategies?","text":"

Following are the 10 most commonly used pricing strategies:<\/p>

  1. Cost-plus pricing:<\/strong> This is a pricing method where the price of a product or service is determined by adding a predetermined markup to the cost of producing it.<\/li>
  2. Target pricing:<\/strong> This method sets the price of a product or service based on achieving a desired profit margin.<\/li>
  3. Dynamic pricing:<\/strong> This pricing approach adjusts prices in real-time based on factors such as supply and demand, time of day, and customer behavior.<\/li>
  4. Competitive pricing:<\/strong> This strategy sets a product's price based on what competitors charge for similar products.<\/li>
  5. Segmented pricing:<\/strong> This method involves setting different prices for different customer or market segments.<\/li>
  6. Price skimming:<\/strong> Initially setting a high price for a new product and then gradually reducing it over time as the market evolves.<\/li>
  7. Penetration pricing:<\/strong> This involves setting a low initial price to quickly enter a competitive market and potentially raising it later.<\/li>
  8. Tiered pricing:<\/strong> This method sets various prices for a product or service depending on different levels of quantity or features.<\/li>
  9. Volume pricing:<\/strong> Offering discounts to customers who purchase large quantities, incentivizing bulk purchases.<\/li>
  10. Value-based pricing:<\/strong> This strategy prices a product or service based on its perceived value to the customer.<\/li> <\/ol>","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#Answer3"},{"@context":"http:\/\/schema.org","@type":"BlogPosting","keywords":["Chief Revenue Officer | CRO","SAP Partners","Pricing","Automotive","Revenue","Industrial Manufacturing","Dynamic Pricing","Wholesale Distribution Trends"],"about":["https:\/\/en.wikipedia.org\/wiki\/Automotive_industry","http:\/\/www.wikidata.org\/entity\/Q466410","https:\/\/en.wikipedia.org\/wiki\/Pricing","http:\/\/www.wikidata.org\/entity\/Q850210","https:\/\/en.wikipedia.org\/wiki\/Sales","https:\/\/en.wikipedia.org\/wiki\/Manufacturing","https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#About","http:\/\/www.wikidata.org\/entity\/Q3394670","https:\/\/en.wikipedia.org\/wiki\/Industry","https:\/\/en.wikipedia.org\/wiki\/Artificial_intelligence","http:\/\/www.wikidata.org\/entity\/Q220695"],"datePublished":"2023-08-16","dateModified":"2023-08-25","url":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/","description":"Nightmare time, CRO style. Learn about industry trends and pricing strategies to reduce margin compression risks. ","name":"Price management: Why commodity pricing keeps CROs up at night","headline":"Price management: Why commodity pricing keeps CROs up at night","subjectOf":{"@type":"FAQPage","url":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/","name":"Price management","about":["https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#About","http:\/\/www.wikidata.org\/entity\/Q60905881","http:\/\/www.wikidata.org\/entity\/Q3394670","https:\/\/en.wikipedia.org\/wiki\/Pricing_science"],"mainEntity":[{"@type":"Question","name":"What is price management?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#Answer1"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#Question1"},{"@type":"Question","name":"What is commodity pricing?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#Answer2"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#Question2"},{"@type":"Question","name":"What are the most common pricing strategies?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#Answer3"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#Question3"}],"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#FAQPage"},"image":{"@type":"ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/08\/Price-management-FTR-1-1.jpg","height":375,"width":1200,"@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/08\/Price-management-FTR-1-1.jpg"},"author":{"@type":"Person","image":{"@type":"ImageObject","url":"https:\/\/secure.gravatar.com\/avatar\/d562636933e42cb0726a283b770bacc0?s=96&d=mm&r=g","height":96,"width":96,"@id":"https:\/\/secure.gravatar.com\/avatar\/d562636933e42cb0726a283b770bacc0?s=96&d=mm&r=g"},"url":"https:\/\/www.the-future-of-commerce.com\/contributor\/garth-hoff\/","name":"Garth Hoff","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/garth-hoff\/#Person"},"publisher":{"@type":"Organization","logo":{"@type":"ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-foc-2x.svg","height":"96","width":"293","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-foc-2x.svg"},"address":{"@type":"PostalAddress","name":"The Future of Commerce","addressCountry":"https:\/\/www.the-future-of-commerce.com\/#Country","addressLocality":"Newtown Square","addressRegion":"PA","postalCode":"19073","streetAddress":"3999 West Chester Pike","@id":"https:\/\/www.the-future-of-commerce.com\/#PostalAddress"},"url":"https:\/\/www.the-future-of-commerce.com\/","alternateName":"The Future of Commerce and Customer Engagement","additionalType":"news media","name":"The Future of Commerce","description":"News, information, and analysis on the future of commerce, including e-commerce, customer engagement, B2B, B2C, DTC, supply chain, sustainability, and purpose.","sameAs":["https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.the-future-of-commerce.com\/feed\/"],"contactPoint":"https:\/\/www.the-future-of-commerce.com\/#ContactPoint","legalName":"The Future of Commerce","parentOrganization":"https:\/\/www.sap.com\/index.html#Organization","numberOfEmployees":"https:\/\/www.the-future-of-commerce.com\/#QuantitativeValue","@id":"https:\/\/www.the-future-of-commerce.com\/"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#BlogPosting"}],{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2023","item":"https:\/\/www.the-future-of-commerce.com\/2023\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"08","item":"https:\/\/www.the-future-of-commerce.com\/2023\/\/08\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"16","item":"https:\/\/www.the-future-of-commerce.com\/2023\/\/08\/\/16\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Price management: Why commodity pricing keeps CROs up at night","item":"https:\/\/www.the-future-of-commerce.com\/2023\/08\/16\/price-management-commodity-pricing\/#breadcrumbitem"}]}]