Last week, we looked at how preparing a pricing battle plan increases your sales and profits while decreasing your stress. This week, let’s look at another example, a service business with about 10 professionals. To protect the guilty, we’ll call … Read More
pricing strategy
What’s your pricing battle plan?
How many businesses build a cool product, then figure out what to charge for it? How many companies decide what to quote on a proposal after they’ve written the proposal? If you make your pricing decisions then, you are at … Read More
Do Pricing First, Not Last
Creative people love making things– widgets, software, knowledge, service calls. A lot of businesses and product lines get started this way. Someone has a cool idea to make something. Skeptics shoot down the idea. The founder or engineer makes it. … Read More
How did Netflix raise their prices 60%
Twitter is abuzz with the anguished cries of Netflix customers, many of whom will soon be paying $16 per month instead of $10 per month for movie rentals. Many others have angrily threatened to cancel their subscriptions. Instead of focusing … Read More
If you think you’re worth it, but can’t say it…
A lot of businesses think they have a great product or service. Something above and beyond what the competition offers. But when it comes time to put a price on all this awesomeness, they are still cheaper than the competition. … Read More
Price Optimization 101
I get a lot of questions about price optimization, so I just wanted to make it really simple. Write down your costs. Of course, you won’t know your real costs, so just use estimates, preferably from 2-5 years ago. These … Read More
Value-based Pricing: When can I stop asking questions?
How do you know when to stop asking questions about value? Couldn’t this go forever, asking “Why? Why? Why?” until we end up in a philosophical discussion? You want to ask questions until you no longer get meaningfully different answers. … Read More
Better, Not Cheaper: Red Velvet Events
In a previous post, called Be Better, Not Cheaper , I talked about how important it is to differentiate elements of your offering other than just your price. Here’s a great example of executing that strategy from Austin and San … Read More
10 Maxims for Improving Profit through Better Pricing
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
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