Prices have been at the middle of human communication ever since the day people began trading one good for another. Who doesn’t like to try to predict what an item may cost or even dispute the cost of an item? Coming as no surprise to people, companies are spending most of the companies’ time and resources to figure out how to price a business’s products and/or services not just to better the company but to help compete with the competitors. Ford’s latest pricing strategy is regarding passenger cars to strengthen the brand’s appeal for retail customers.
Ford has concentrated on recommending an official list of prices on medium and small cars from August, with similar action on Ford’s larger cars and SUV’s to follow in April. Before these prices go into effect, Ford will allow dealers to offer special promotions which will help mirror these lower prices in the future. With this pricing strategy, Ford is hoping to make ground with its competitors by offering a similar vehicle at lower prices.
Another pricing strategy Ford is looking to implement is to provide its customers with the best value, confidence that they will get the high-quality and advanced features in their car, as well as competitive prices. One last pricing strategy that Ford is planning to put into place in 2011 is the development of the Ford Explorer EcoBoost. Ford is hoping this car will appeal to those looking for a SUV sized vehicle but with the gas prices of a passenger car.
Ford is hoping this car will help those who purchase the car save money on gas in the long run and that people will be willing to pay $1,000 for the EcoBoost engine to save in gas each year. With certain price strategies, businesses such as Ford are able to have a large influence of company profits, and that having a well created pricing strategy is even more critical in today’s hyper-competitive world. Pricing strategy also is very important in today’s economy where everyone is worried about the chance of deflation, which is the broad decrease in price of an item.