Pricing is based on three critical points:
- What your product or service is worth to your customers (it's value).
- What it costs you to produce your product or provide your service.
- The price your competitors charge.
Topics: Price Manager
You may already think you're a bit of a pricing genius?!! You may have already settled into your first few months on the job. Maybe you've got that good degree - or even an MBA? Perhaps you've moved rapidly through the ranks and have landed a pretty amazing job in the pricing world. Are you sure however that you ALWAYS utilise your skills, expertise and know-how to squeeze out those extra profits for your business?
Topics: Price Manager
We're attending the Professional Pricing Society Annual European and Global Pricing conference in Amsterdam between 2nd and 4th December 2015. It's a 3 day gathering that includes workshops and networking opportunities with leading Pricing Professionals.
Some of the workshops that have particularly taken our attention include:
Introduction
This article builds upon a previous look at psychological pricing, and covers seven pricing studies that will challenge you at your next pricing review, and even provoke discussion around pre-conceptions you may have on certain pricing strategies. Discussion points include: how the number 9 is not as all powerful as you may think, and that offering services for free can in fact benefit your business.
What is in your price list?
What should be included? Time to look into Price Lists.
Most businesses will need to draw up a price list at some stage. If you sell a fixed range of products or provide standard services, this may be the only form of pricing you need (e.g. manufacturers). A standard price list can also be used as the basis for pricing any non-standard orders – but tailored and tweaked to meet your customer's specific requirements – not however to be confused with an estimate or quotation.
Whether you are a large or small business, if you want to let a potential customer know the cost of the goods or services you can provide before they decide to purchase you will need to deliver a quotation.
Topics: Quotation Software
A key component to pricing your product right is to constantly review prices and your underlying profitability. It's not enough to look at the overall profitability of your company every month or so. In order to keep ahead of the game you need to focus on the profitability of every product you sell almost on a daily basis. You have to make absolutely sure you know the amount to which every product you sell is contributing to the success of your business.
You're a good salesperson and you naturally spend a lot of time thinking about why prospects would decide to buy your product as opposed to your competitor's. What you really need to do is put yourself in your buyer's shoes and run through all the reasons why they might say "no" to buying your product and what you should reply. If you are an "old hand" in sales then you will have fended off many of these objections in your time. If you're new to sales, these should help with the learning curve.
Topics: Sales
What does CPQ mean?
Configure, Price and Quote (CPQ) brings together three critical elements of a sales cycle. It can be applicable in business-to-consumer (B2C) sale interactions, but is more commonly adopted in business-to-business (B2B) situations.
The ultimate to-do list for your first 100 days in a pricing job
Posted by
Moira McCormick on November 4, 2015
Firstly, congratulations on landing your new job - but you know it's going to be challenging, right? The first three months will be a steep learning curve as you absorb information on the company, its personnel and of course historical and current pricing. Every company is different and in a pricing role not only do you have to figure out your company's culture and dynamics, but also their sales processes, their products and sometimes all this in a completely new industry. In order to survive and thrive during those early days you will need to:
In my time working across industries at Accenture, Innoware and BlackCurve, I have come across many powerful spreadsheets running business critical processes. Whether customers are using Microsoft Excel, Open Office or Google Sheets to name a few, these tools used correctly can be very powerful. But they do have their limitations...
Topics: Pricing Software, Pricing Solutions, Price Engine
10 pricing techniques to get and keep a buyer's attention
Posted by
Moira McCormick on November 2, 2015
So you managed to keep your customer's coming back. Now finding the right pricing strategy is a vital element in running a successful business. A business can use a variety of pricing techniques when selling their product or service and the price can be set to maximize profitability for each unit sold or from the market overall. Price can be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market. Businesses may benefit from lowering or raising prices, depending on the needs and behaviour of their customers.