One of the aspects of best practice pricing is to take control over what customers are willing to pay. Just today I found another example of this. General Mills, the food giant reported strong earnings growth. Here are some interesting numbers:
Revenue for its US retail business increased 9.1% while sales volume “only” increased with 3%. Thus, the company was able to increase prices, and/or direct consumers to more expensive products.
General Mill’s CEO Ken Powell said in the press release that they made a significant marketing reinvestment and will continue to do so. Thus - General Mills took control and influenced the marketplace, with marketing, to pay higher prices. A great example of what just about every company can elect to do - even when selling commodities like General Mills.
With best cereal regards,