Creating Value & pricing strategy thoughts and ideas
BACKGROUND A key part of a pricing strategy is determining how to differentiate your brand. “What?”, you may ask. Isn’t brand differentiation normally accommodated in the communication strategy arena? This is true. However, it is also very strongly linked to…
BACKGROUND Anyone who has done Economics 101 will have seen a demand curve with a price on the one axis and demand on the other. The principle is to demonstrate that demand declines as price increases, except in some unusual…
BACKGROUND Do profitability and market share not always come together, you may ask? To some people this question is heresy. To others, it is simply obvious. The reason for this is that most business people have been brought up to…
BACKGROUND Pricing is possibly the biggest profitability lever in your business! At first glance, this finding is often surprising. We know that pricing affects competitiveness and overall profitability. Yet, shrewd pricing can often be the fastest way to improving growth…
BACKGROUND Although a client may leave you for a variety of reasons, we generally find that there are two key drivers of defection that a pricing strategy can address. The first is when clients feel they are not getting value…
BACKGROUND Successfully integrating pricing strategy and communications strategy relies on a focus on two broad areas: How do we make ourselves look attractive to prospective customers so they will buy our products and services? How do we make current customers…
BACKGROUND Over time, you may have put together a portfolio of offerings, be it a range of products or a range of services. In the early days, when there were fewer products or services in your range, you found it…
DISCOUNTING IS A BIGGER PROBLEM THAN YOU MAY THINK Pricing and discounting are two sides of the same coin. In fact, you could argue that discounting is actually a part of the pricing strategy. You need to get both right…
BACKGROUND I am sometimes asked to identify the “Correct Price” for a product or service. Is this possible? In theory, yes. But practically, you will find that there are many correct prices depending on who your customers are, when the…