#2 Price Sensitivity & Segmentation, Part 1 This is the next in a series of blog posts that will dive deeper into strategic pricing tips posted on 8/14/14. We'll continue with #2: Price Sensitivity & Segmentation: Price sensitivity is not constant by customer, product, or order. Here are some examples: Customers are not [...]
Who is More Price Sensitive: the Seller or the Buyer? I say this often: the seller is often the most price sensitive person in the selling conversation, not the buyer. Audiences and clients never believe me at the beginning. It's counter-intuitive, but it's true. I lead workshops all over the [...]
Your Price Isn't Necessarily Too High, Part 2 I recently had my kitchen partially remodeled. I sought someone to install granite countertops to match the remainder of the kitchen. I was referred to a local supplier who is fast, clean, did great work, and (this is important) had the exact [...]
Your Price Isn't Necessarily Too High, Part 1 I'm taking a break from the list of strategic pricing tips for a blog post or two. Time to mix it up. I keep hearing this from clients and audience members at my talks: your customers tell you that your price is [...]
#1 Price Leverage, Part 4 If you increase prices modestly (1-2%) or moderately (5-10%), how much volume could you afford to lose and still make the same profit? This is a really valuable exercise to undertake. Here’s why: predicting volume loss precisely in the face of a price increase is [...]
#1 Price Leverage, Part 3 In the last post, I talked about the leverage of price discounts. I'd like to dive deeper into the danger of this. One of the most common myths I hear from sales teams regarding discounting is that they will "make it up in volume." There are [...]
Price Leverage, Part 2 In the last post, I recommended calculating what a 1%, 2%, 5%, or 10% price increase would translate to in bottom-line profit for your business. We saw the pulley effect that pricing has on profitability. It works both ways: if small price increases have a large [...]
#1 Price Leverage, Part 1 This is the first of several blog posts that will dive deeper into strategic pricing tips posted on 8/14/14. We'll start with #1: Price "Leverage:" I recommend this step to clients and audiences: Calculate what a 1%, 2%, 5%, or 10% price increase would translate [...]
A few months ago, I talked about pricing with a friend who runs a web design firm. Adapted below is a list of points I shared with him based on the specific challenges he faced. I've since sent the list to other business leaders looking to make quick strides in profitability through [...]
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