Willingness to Pay vs Price Sensitivity
June 30, 2021
We pricing people often use the phrase Willingness to Pay. The profit maximizing price for any customer is to charge what they are willing to pay. We
Tag: pricing value
Perceived versus Real Value
June 24, 2021
The most important concept in Value Based Pricing is customer perceived value. You can only get paid for what customers believe. I often do a little
When Should You Lower Your Price?
June 9, 2021
It’ll come as no surprise that my first instinct is to encourage you to never lower your prices. Many people want to lower their prices
The Buyer’s Journey: When to Reveal the Price
May 27, 2021
When you’re having a sales conversation, at what point do you start talking about the price? Of course, the answer is “it depends”. It depends
Three Lessons from a P&G Price Increase
April 28, 2021
On April 20, 2021, the Wall Street Journal published an article titled Procter & Gamble Will Raise Prices in September. Here are the first three sentences:
The Role of Finance in Pricing
March 17, 2021
CFOs should be ideal people to drive pricing, but they usually aren’t. They are awesome because they care about margin. They build forward looking revenue
Pricing is NOT Driven by Supply and Demand
March 11, 2021
If you’ve ever taken a macro-economics course, you know that price is where the supply curve intersects with the demand curve … in theory. For
The Value of a TV Channel
March 3, 2021
I just read an article titled, “How Amazon and McDonald’s Use Bundling to Sell More of Everything.” Since I spend a lot of time thinking
Be a (Value) Sorting Hat
December 9, 2020
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
Costs and Pricing Are Not As Closely Related As the World Thinks
January 15, 2020
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
