Sales-Oriented Pricing Strategy - Explained
What is a Sales-Oriented Pricing Strategy?
Written by J. Mance Gordon
Updated at April 17th, 2024
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What is a Sales-Oriented Pricing Strategy?
A sales oriented pricing strategy is where you set our product price based on a particular sales target or sales goal. Sometimes, it could be about units sold. So, we might say we want to sell 10 million units. In order to do that, we think we need to set this price here. That's one way to go. Another way to go would be to target a certain market share. We can approach our price setting to try to hit that goal.
In general, when we take a sales oriented pricing strategy, it tends to put downward pressure on our price. So, we have to make sure we don't go so low as to fail to cover our costs. But, if we really want to increase sales, generally that means setting a price a little lower.
In any case, if our pricing strategy is based on sales or a certain sales target, what we are using is called a sales oriented pricing strategy.
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