Impact Pricing Blog

Fixed costs never matter to pricing. Variable or incremental costs only matter to pricing in markets where we don’t negotiate. If you’ve read or followed me for very long, these statements should [...]

This is a Q&A blog post with pricing expert, Mark Stiving. If you have a pricing question for Mark, ask on his LinkedIn page. Question: Should I A/B test our pricing? Answer: The best answer [...]

I’ve written about this several times during my career, and here’s the periodic rant. Your boss was in school and learned about price elasticity. What is Price Elasticity? The definition of price [...]

Question: We’re a small organization without a formal “pricing” person or any real framework for how we gather and act upon pricing data we get from the market. What are some [...]

What is Useful About Reference Prices? A reference price is what a buyer expects to pay. If your price is above that, it’s very hard to make a sale. If your price is below that, buyers are much [...]

Question: Hi Mark, How do you measure customer’s willingness to pay when data is unavailable or sparse? – J Answer: Hi J, By saying “data is unavailable or sparse” says to me you were [...]

What is Value? Recently, I’ve been involved in 3 different conversations on LinkedIn about this topic. One of them I intentionally initiated because I was hoping to understand the different [...]

Question: Hi Mark, I hope all’s well! I have an exercise I’m working on which is to develop a B2B rebate program. Aside from your blog article several years ago on this topic (Rebates [...]

The title of this article might also be rephrased as this question: When you set prices, how much do the competitor’s prices matter? What is the Difference Between a Price Leader and Price [...]

Question: I am confused by the terminology around Value and Willingness to Pay (WTP). I may get $100 of value but only willing to pay $50. Could you clarify? Answer: In my mind, Value and WTP are [...]