The second most powerful tool you have available when it comes to pricing is price segmentation. Every company – big or small – must be thinking about their own opportunities to [...]
Last week, we discussed the hope of a “magic price” – and determined it is in fact nonexistent. So, if this is the case, why bother to think hard about pricing? The answer: Because pricing [...]
Many people I talk with are under the impression if they only knew the right price, they would be doing so much better than they are. This belief in a magic price makes us feel good – just [...]
Many pricing people are brilliant and love numbers more than most. When we figure something out, we are usually right. Yet, too often the rest of the company isn’t as smart as we are. 🙂 We end up [...]
Your customer’s willingness to pay is an excellent measure of your product’s value. And their willingness to pay is best estimated by the price at which you end up winning a deal/making a sale. [...]
It’s been a while since I introduced myself, and many of you are new readers to this blog. If that’s you, welcome. I wanted to take a moment to tell you a little about myself (if you’re [...]
Thomas Nagle, the father of modern pricing, created EVE or Economic Value Estimation. It’s hard to say exactly what EVE is. It’s a template, a process, an exercise. Most of all, it’s a way of [...]
The two most profitable pricing decisions any company can make are: Adopt value based pricing Use price segmentation Let’s briefly define these terms… Value based pricing simply means [...]
People are afraid to focus. They’re afraid to go after specific market segments, and instead want to go after ‘everybody’; they don’t want to miss out on business from a [...]
I’ve heard some version of the following from many CEOs: “We create a lot of value for our customers but we don’t do a very good job of capturing our fair share in our pricing.” This one quote [...]
