Pricing expert Mark Burton tells us that pricing is one of the least utilized but most potent tools we have. There is only one purpose for price – to increase profitability. Go through these 3 questions: What is your purpose for price? How consistent is your leadership team in supporting that purpose? If there are inconsistencies, what are the leading causes? You need to understand the value you offer your customer. Then, identify how to create financial value for customers so we can know when to charge more and what to take away when we charge less. Better prices, less discounting and more effective offering significantly increase both profits and revenue. Replace the discounting habit with a little confidence! In the absence of other indicators of quality, consumers look at price. What does your price say about your product or service?
Awesome post guys. For me personally, price is not only reflective of the potency of your brand, but also the level of value for which you apply to said brand. It's not about making something expensive to create value like designer water companies do, but to charge a price that can continue to support and reflect the value of your product as the brand lives on.