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B2B Pricing Strategies: Examples of Pricing Mistakes That Can Undermine Sales Outcomes

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Pricing is the most crucial strategy for retailers, especially those who sell goods. To gain more customers, you need to consider various factors before setting the price of your products via the diverse B2B pricing strategies that exist.

Pricing Based Solely on Undercutting Your Competitors

People frequently shop based on the lowest pricing. It’s a major factor in the rise of several internet stores. However, adjusting your prices based on that information alone is usually bad for most businesses. If your product or service measures up to the competition, customers can be put off and think it’s not as reliable.

Not trying out new price structures

We’ve established that it’s crucial to regularly test and evaluate your pricing strategy, but many businesses need help figuring out how to do so. With A/B testing, you may compare several approaches’ efficacy and identify each’s most successful elements.

This can assist your company in determining the sweet spot for product characteristics and prices most appealing to your target market. Even businesses that monitor prices consistently seldom conduct experiments to learn more about their consumers’ wants and needs, let alone their willingness to pay.

A company that sets excessively high prices might generate substantial profits from each sale. However, customers are very perceptive of the value they get for their money, and they will cease purchasing goods if they determine those goods are expensive. Customers have short-term memory and may be wary of doing business with you again if they have had a negative experience in the past.

Failure to Avoid Customer Segmentation

Businesses rarely have a single product that appeals to everyone. Each potential customer has unique needs and price constraints, and you must cater your approach to them individually.

Segmenting your consumers based on standard criteria can enhance your revenue and customer acquisition rate. You may tailor your marketing to specific subsets of your consumer base by categorising your existing and future customers.

Price-Setting That Is Out-of-Date

Even if a previously implemented price has been profitable for your business, you may need to make adjustments at some point. You need to evolve in response to shifting market conditions, customer preferences, and industry standards.

Inflation may increase the cost of your inputs, causing a price increase to maintain profitability.

Ignoring the Need for Context

Context is crucial whether you’re trying to market a product during a pandemic or shopping in a more upscale area of town.

A product offered in a ritzy neighbourhood commands a higher price point since consumers in that demographic automatically assume that it must be of more excellent quality. In a similar vein, if you market your service as the more cost-effective alternative, you run the risk of undermining its perceived value.

Not Considering a Competitor’s Reaction

Whether it was your intention, changing even one of your prices might affect your main competition. They will see how your new deals and specials attract customers away from them if they are paying attention.

Soon after that, they will inevitably start their reforms. Try to guess how they’ll respond and then adapt accordingly.

How much business do your competitors conduct? Have you ever wondered why their product is so popular? Monitor the competition and analyse how your model stacks up against the others. This practice is known as benchmarking, and a surprising percentage of startups and SMBs overlook it at their peril.

How to Know When You’ve Made a Pricing Mistake

Uncovering and fixing a price error is more straightforward in theory than in practice. Looking at less-than-stellar sales and instantly blaming your pricing may seem the obvious choice. But many factors come into play when setting a product’s price, and many more come into play when you include them in the product’s sales and marketing efforts.

Product pricing is determined by several variables, including but not limited to your desired profit margin, your brand’s strength, the market’s size, and your marketing goals. There are several potential causes for a price mistake.

There are indicators you may use to gauge whether your pricing is off. One of the most glaring is weak sales, which is problematic if a competing company offers a lower price. As a result, reconsider your current market position and pricing approach.

Another is monitoring sales to determine whether they drop at a specific price. If you’ve had years of steady sales at a particular price point but suddenly observe a steep drop in demand, it’s time to reevaluate your pricing approach.

What people will pay for a product or service is ultimately what that product or service is worth. People won’t pay a specific amount for yours since it’s not worth it at the time if they’re not willing to buy it.


Certain pricing strategies can increase sales and profits. However, they also come at a cost. Some common mistakes include overpricing items, underestimating costs, or using price promotions without considering other marketing activities. Understanding these common mistakes helps you become better at pricing.

In addition, knowing where to look for information about pricing strategies can save time and resources. Pricing strategies should be customised for each item. The goal should always be to maximise profit or minimise losses. If done correctly, pricing strategies can improve brand value and increase profitability.


Kossi Adzo is the editor and author of He is software engineer. Innovation, Businesses and companies are his passion. He filled several patents in IT & Communication technologies. He manages the technical operations at

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