Your price ceiling is limited by the Perceived Differential Value of your offering. Customers determine this, but you can help them along the way. Your price floor is limited by your costs. If your floor and ceiling are the same … Read More
pricing for the CFO
Don’t limit yourself on price
If you’re reading this blog, you probably know the dramatic profit impact of small price improvements. (For a company running at 10% net margin, a 1% price improvement increases profit by 10%.) Yet even when companies want to improve pricing … Read More
The World Cup, Data Analysis, and Maximizing Profit
I’m a big fan of analytics. And sports (although I no longer have time to keep up with them). So I’ve always been puzzled that with so much money and pride on the line, teams have done so little analyze … Read More
Value is what the customer is buying– not what you’re selling
In a previous post (Be Better, Not Cheaper) I talked about the importance of differentiated value. I have conversations about value almost as often as I have conversations about pricing, because a lot of pricing confusion is really value confusion. … Read More
Be Better, Not Cheaper
Who doesn’t love a bargain? We all do, and we know our customers do, too. But that doesn’t mean price is the only thing that’s important. It becomes the only thing that’s important if everything else is the same. Many … Read More
Is pricing an art or a science?
I get this question a lot. Sometimes from people who want to think it’s some kind of magic that doesn’t require rigorous analytical thinking, usually from people who want to prove that it’s a science. Often their desire for proof … Read More
Webinar: grow sales *and* profit
Join us for a webinar on B2B sales optimization. We’ll look at how manual negotiation processes cost time, sales, stress, and 10% or more of profit. Why does this happen? What have companies tried to do about it? And what … Read More
Subscriptions are in, free is out
Chris Anderson of Wired said that Free is the price of the future. Some of us beg to differ. Among those with other opinions are Lincoln Murphy of 16 Ventures who published a paper called The Reality of Freemium in … Read More
The Night before Christmas (Sales Compass Edition)
Twas the night before Christmas, when all the through the houseNot a hard drive was stirring, not even a mouse. The pipeline reports were tallied with careIn hopes that the revenue soon would be there. The sales teams were in … Read More
Get a free Sales and Pricing Diagnostic Report
Are you leaving 10% of your profit on the table? Do you know where?This free report provides analysis on your business to help you maximize sales and profit for 2009, including: Where you’re leaving money on the table in negotiations. … Read More