Adele McLean talks about finding your pricing purpose in this week’s video blog. Find out if you have succumbed to some of the common pricing pitfalls, like cost-plus and market-based pricing, and how to get your pricing priorities back on track.
As a pricing professional, I always love to quote the study that a 1% improvement in price leads to 11% in operating profit, whereas a 1% increase in volume sold improves only by 3.3%. If the business case for managing and improving price is so apparent, why don’t more companies do it? There are multiple factors why a price improvement… Read More
Ask any salesperson what their most valuable asset is, and they will answer instantly—my time. Great sales people are really stingy about this scarce asset, always asking “Is this the best use of my time?” before they engage with a prospect, set up a sales call, or respond to an RFP. In sales terms, they qualify the opportunity before they… Read More
Lately, we’ve had a lot of conversations with businesses that are ramping up “strategic pricing“. They’ve adopted more systematic approaches to pricing and have taken responsibility for setting prices away from salespeople. This transitions price away from the team worried about closing a sale to specialized pricing people who are worried about generating profits that meet company goals. That’s terrific…. Read More
For over a decade, athletic titan Nike declined to partner with Amazon, America’s largest online retailer. Nike held out, wanting to carefully control brand messaging while enjoying higher margins through its distribution network of brick and mortar stores. On June 29th, Nike conceded by confirming a deal with Amazon to sell and distribute apparel and footwear. Ironically, consumers may not notice… Read More
With astonishing speed, Uber has disrupted the taxicab industry. Others have looked at their success and dreamed of emulation. The strategy often touted for Uber’s success is surge pricing; charging higher prices at times of high demand. Surge pricing is an example of dynamic pricing, where the price fluctuates depending on one or more factors, like the demand for ride service…. Read More