Last week, we talked a lot about how we can adjust to our current economic climate. We discussed several ways of doing this, including how to focus on your most profitable product or service by identifying the greatest value you can provide to consumers. Another way to increase your marketability is through adjusting your pricing. People are spending their money more carefully than ever, and many companies will have to alter their pricing in order to remain competitive. Mark Burton, along with his partner at Holden Advisors, has come up with Value Discipline to help guide companies into value-based pricing so that they can deliver greater profits all around. Value Discipline takes into account the following quantitative and qualitative factors that influence pricing:
• Organizational tension such as miscues between Marketing and Sales about pricing or pressure to make today’s numbers at the expense of tomorrow’s goals.
• Competitive actions such as rolling out flanking products, bundling products, or providing discounts.
• Shifting customer demands for value within markets and segments, right down to the after-effects of a new product entry.
• Pressure to rationalize offerings and match their value to specific market segments.
• Fear that too high a price may lead to lost accounts and declining share.
If you haven’t yet begun to adjust your pricing standards, isn’t it time? This new normal isn’t going away. Join us at the Gazelles Sales and Marketing Conference to hear more from Mark Burton on pricing.