Pricing with Confidence

Take Simple Steps to Move from Cost-Plus to Value- Based Pricing Criteria for a Confidence-building Pricing Process.

Pricing occurs at two levels: strategic and tactical.

It is known that when markets mature, they become less responsive to change in price.

Force Your Competitor to React to Your Pricing.

Add New Products and Services that Give You Negotiating Flexibility & Growth.

If products and services add more value for customers than you thought they would, consider increasing prices.

The highest purpose of pricing is to improve profits.

Customers have different agendas for different vendors.

Adjust your offering and selling approach to optimize your advantage.

Some customers are motivated by price alone. Others want, & are willing to pay for, value. Know the difference, so that it can work for you.

All customers say that value is what they most want, but many are bluffing. Some customers are motivated by price alone.

Develop an understanding of a common factor between different customers within a segment.

It is no longer just about price, but about value and price.

By showing that you understand your value and demonstrating that your prices are reasonable given that value, you change the discussion.

Asking customers directly about your prices is an invitation for them to posture. Everyone will agree that your prices are too high.

There is one question that we do not recommend you to ask your customers. And that is, "What do you think of our prices?"

The best insights often come from your feet in the street.

If you can't articulate your value in dollars and cents, you won't get paid for it.

You can't have confidence in your pricing until you have confidence in the value that your offerings create for customers.

One of the root causes that lead to excessive discounting: selling to customers who don't and will never value what you sell.

One of the problems that lead to discounting is salespeople and managers who look for every opportunity to sell something.

The starting point in being confident in your price is being confident in your value.

Just a little bit of arrogance signals the confidence needed to kick the discounting habit.

The best way to dislodge any deep-rooted attitude is to replace it with another.

Using lower prices to go after market share is risky.

Lower prices eat into profits of both companies and customers love a price war.

If you know that your costing systems inflate the true costs, maybe you use market-based pricing.

Setting the optimum price is one of the most difficult decisions managers ever make.

If you hit the optimum price, your customers will be happier, your profits will be higher, and your bottom line will be healthier.

An optimum price is the price that meets the requirements of the buyer and seller.