There are many factors that affect the price of clothing, which can be divided into two main parts: one is the internal factors of the clothing itself, which determine the value of clothing. The other is the external factors unrelated to the clothing itself, which causes the price deviates from its value and the frequent sharp fluctuations, such as sales promotion. So how do we make the pricing strategy?
To promote sales,reducing prices is a good choice. But there is a great correlation between price reduction and promotion duration. The price cut was modest in the early stage of price reduction but large at the end of the sale season. Therefore, enterprises should make a plan of when to cut the prices and how much should be cut to keep a reasonable price level.
The other way is setting prices based on the product value in consumers’ mind and their price expectation. The so-called "value in mind" refers to the price acceptable by the buyer rather than the actual value of the product. Therefore, the seller can use different kinds of marketing methods to influence the buyer's understanding of the product so as to increase their acceptable price. Then fixing the price according to the product’s value in buyer’s mind.
Clothing enterprises should position the new products in specific target market according to the products’ quality, price as well as their services and set up a good market image. The demand-oriented pricing needs the right estimation and judgement of whether the product can fit the value in consumer’s mind or not. It will cause sale difficulties due to overestimating and profit losing due to underestimating.