Impact Pricing Blog

I came across a great pricing insight a while back on a day when my car battery died. After unsuccessfully attempting to replace it myself (why are cars so hard to work on these days?), I called [...]

Customer lifetime value refers to how much value (or revenue) we could earn from a customer over the duration of their time with us as a customer. So long as it’s profitable to do so, a business [...]

What exactly is the role of variable costs when it comes to pricing? This might already be obvious from the post “Fixed Costs Matter to Your Business – NOT Your Pricing“, but I felt the need to [...]

The first time I heard the concept – Price for Market Capitalization – was from a close friend of mine, Brent Bilger.  Brent has been involved with start-up companies for over 3 decades, and has [...]

It’s true.  Your fixed costs matter sometimes, but they are not relevant to your pricing decisions.  Your prices should be determined by your customer’s willingness to pay.  Their willingness to [...]

Cost plus pricing is one of, if not the most commonly used pricing technique in business today. After all, it’s easy to implement, it ensures you a decent margin, it makes competing predictable, [...]

Many companies give a discount to customers who buy in volume. Do you do this? Stop reading for just a moment, and consider: Why do you do it? Why is it so common for companies to offer volume [...]

In the Harry Potter books, each new student who enters Hogwarts is placed into one of four houses by “The Sorting Hat”. This animated hat reads the student’s mind, learning their character, then [...]

As you can see by the attached image of an email Netflix sent, they are raising prices again. Let’s take a moment to evaluate their implementation’s pros and cons, at least from what we can infer [...]

My last several subscription clients all wanted to raise prices. They provide excellent value to their customers, and some even have ROI studies to prove it. They are in a great position to do [...]