As pricing professionals, we really need to be the logical part of the business. Our product lines, they really want higher prices. Sometimes they become emotionally involved with their products and they think that they’re worth a ton – and they probably are.
Have we explained the value to the customers? Are we able to capture all those higher prices?
And what we want to do as pricing people is make sure we understand whether or not we’re communicating value well to the marketplace. And if we’re not communicating value, maybe we’re discounting so that we can at least win some business.
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“We pricing professionals are the fulcrum of the business. Product lines want higher prices, sales want lower prices.”
– Mark Stiving
So we’re almost like the dispassionate referee. We’re trying to say, hey, it makes more sense for us to price this way if we want to maximize profits.
On the other hand, salespeople, customers too, what lower prices. Salespeople have prices, one of their tools to close a deal. When a customer asks for a lower price, it’s easy for sales to come back inside and ask us for lower price.
Again, we need to be that dispassionate referee. Have we truly explained the value to the customer? Do we know how much value that customer is going to be getting? And can we hold that price up a little bit without going for deep discounts?
So in the end, we, the pricing professionals, are that fulcrum. We’re trying to find the logical center of where prices should be.
We hope you enjoyed this podcast. If you see have any questions or feedback please email me [email protected]
Now go make an impact.
Connect with Mark Stiving:
- Email: [email protected]