What is Non- Pricing Strategy ?

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"What is Non- Pricing Strategy"

A pricing strategy is based on generating or maintaining sales predominantly on basis of pricing. This strategy focuses on keeping the prices of the products at par or lower than the competition to get sales.

This pricing strategy is followed in most of cases where there is not much differences in the products /services offered by different companies.

One of such pricing strategies is cost plus pricing strategy which we discussed in one of previous blogs.

But there are some visionary companies which like to price their products and services differently.

Such companies love to compete in market not on price but on other variables.

Today we will discuss such competitive strategies which are crafted on non- pricing factors.

So let us start

Non-Pricing strategy on the other hand is a, strategy which focuses on factors other than pricing as mentioned below:

Product quality- Under this strategy companies offer good quality products than competition to get better price for their product/service.

Customer Service: Under this strategy companies focus on providing good customer service before and after sales.

Branding: Under this kind of strategy money is spent on creating good image of product/service by spending on marketing activities like attractive packaging, good advertising.

Non-Pricing strategies are leveraged by companies to differentiate their product or service from competitors.

This differentiation helps companies claim better prices than competition.

(To get insider comprehension knowledge about FMCG industry buy our book on Flipkart  now by clicking this link:

https://bit.ly/3kkXCDT)




Pricing strategies are easy to copy as changing pricing of product /service by competition does not take much time and thinking.

But it is difficult to copy non-pricing strategy by competition .

So great companies always focus on non pricing strategies while the average ones always focus on competing on prices.

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Happy Living !


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