The potential of deflation has been talked about for what seems an age.  Now it has hit home with a rate of -0.4% as inflation has not dropped below zero since the 1960s (nearly 50 years).

Low mortgage interest rates have helped to take us into negative inflation.  As a consumer, you will have personally been affected by fluctuating prices – food and fuel in particular.  Likewise, your consumers and clients will also be affected, not just by the amount of money that they have in their pocket, but also by how confident and secure they feel about the future.

The Retail Price Index (RPI) measures prices of over 1400 items that includes transport, mortgage interest, food, fuel, leisure, catering, alcohol, services, clothes and shoes.  See National Statistics - http://www.statistics.gov.uk/instantfigures.asp for further details. 

Pricing as a Marketing Tool

Pricing is a crucial marketing tool and can either win or lose customers.  Pricing can help you to position your products and services in a particular market aiming it at a specific target group.  Whatever you are