Your customers need a portable car inflator because no one wants to stand helplessly on the road with a flat tire. The situation worsens when there’s no gas station nearby.
In this context, you have the opportunity to partner with a reliable tire inflator company and start selling handheld inflators to your customers.
You may have a good idea of the tire inflator market if you are already running a business. If you do, you’d agree that every manufacturer doesn’t necessarily offer you the right quotation.
You need to learn how to get competitive pricing from the tire inflator supplier, and this post will be more than helpful.
Pricing Strategies for Your Business
Undoubtedly, pricing is the most important factor when buying a car air pump from the customer’s perspective. They see the price tag of the product before checking any other details. Moreover, the pricing determines whether a customer will buy a tire inflator or not.
With the non-stop growth of e-commerce businesses, the competition is getting tougher every day in every industry. Like other businesses, you must also try to get a competitive edge while selling tire inflators.
Furthermore, businesses consider the following factors while setting the mini portable inflator’s price are:
- Competition
- Cost
- Price sensitivity
The target of the businesses is to cover the production, overhead, and hidden costs. Also, they want to maximize the profit without adding any cost to the infrastructure.
So, there are a few strategies for getting competitive pricing from the tire inflator.
Competitive Pricing Strategy
It’s the first and most common pricing strategy businesses run after. They look for what prices their competitors have set and make changes in their pricing funnel accordingly.
Also, many car accessories businesses sell car inflators. That means you will inevitably face competition.
When the market becomes mature, you can’t introduce any innovation or breakthrough in the industry. That’s when the competitive pricing or setting the price according to the competitors decides which business will be the most profitable.
Besides, the competitive pricing strategy works well while selling products because you can’t change the core of that product. But, on the other hand, you can easily make changes in the services.
Markup Pricing Strategy
It’s also known as a cost-plus pricing strategy. You can add some portion of your profit to the tire inflator’s cost. That cost will become your selling price.
Usually, this strategy focuses on setting the price according to the COGS (Cost Of Goods Sold) or the car air pump’s production cost. Businesses don’t consider other factors like:
- Competitor’s pricing
- Consumer’s demand
This strategy is unsuitable if you have just started selling car tire inflators. It’s because there is very little research related to competition and demand. You only “markup” the products with how much profit you want to earn by selling them.
However, this strategy might help boost your business if you are an old partner with the tire inflator supplier. With that, your financial backbone must also be strong to succeed in the markup pricing strategy.
Demand Pricing Strategy
It’s a simple pricing strategy in which you decide the price of tire inflators according to their demand. Then, when the demand is high, you can push up the price and earn profit.
Moreover, this strategy is known as customer-based pricing because you can increase the portable inflator’s price when more people want it.
So there are two major factors in this strategy:
- Customer’s demand
- Tire inflator’s perceived value
Although the demand affects the car air pump’s pricing, the manufacturer must be reliable enough to provide the best value in tire inflators.
The demand pricing strategy is usually seasonal. For example, the price of air tickets increases in the vacation season. The same goes with the hoteling sector on the same dates.
You already know that the need for a Cordless Rechargeable Tire Inflator is increasing daily. So, it’s wise to partner with the best Chinese manufacturer.
You can get the best competitive pricing with a complete product customization option.
Penetration Pricing Strategy
This strategy refers to the market penetration where you introduce a new product in the already existing market. You keep the price low initially so that more customers can buy and test the digital car tire inflators.
Once you create a customer base, you can increase the price of the car air pumps.
Furthermore, the following are the two purposes of the penetration pricing strategy:
- To attract customers away from your competitors.
- Make customers buy your tire inflators by keeping their prices low.
This strategy works well when an already established market has a large customer base. You can then start your marketing campaigns and slowly penetrate that market.
The customers who buy car accessories from that market or online platform will get attracted to your offerings. As a result, your customer base will automatically increase because you have kept the prices low. On the other hand, you might have to suffer temporary loss just to acquire prospects.
Price Your Product
You can follow one of the abovementioned strategies to get competitive pricing from the best tire inflator supplier.
Now, you have three options to set the price of the portable digital air pumps:
- Price lower than your competitors
- Price same as your competitors
- Price higher than your competitors
Price Lower than Your Competitors
If you can get more products at the same production cost, this option is viable for you. However, this option is full of risk because it will reduce the profit margin.
You can use this strategy as a short-term plan just to attract more customers. However, if you keep pricing the tire inflators lower than competitors, you might even face bankruptcy.
Price Same as Your Competitors
The pricing factor doesn’t determine the profit anymore. Therefore, you must add something to your products without any additional cost to provide more value to the customers. That’s the only way to stay ahead of your competitors.
Price Higher than Your Competitors
This option is also known as premium pricing. You must request customization to the digital tire inflators and justify their premium pricing. Otherwise, no one will buy your product.
Conclusion
You can go for the competitive pricing strategy and set the price on your own. In addition, since you can customize tire inflators with Best Avehicle, you can also penetrate the market with premium portable car air pumps.
Therefore, place your order now and get the best profit margin for your car accessory business.
