Make Your Pricing More Effective ...
In a study by IE Business School & Simon-Kucher & Partners, 1,225 executives from all industries were asked: “With a profit margin of 20%, how much does the volume of a product need to increase in order to compensate for a price reduction of 10%?” Only 4% estimated the answer correctly. 74% strongly underestimated the answer and 17% didn’t know.
Presented at a Professional Pricing Society webinar on 14th September, 2015 by Philip Daus of Simon-Kucher Partners.
Which category do you fall into?
High List (Price), High Discount, n. technical, obsolete. How to undermine your investment in your branding and devalue your own value prop with a few carelessly chosen words, like "80% discount". … [Read More...]
Price Floor (2), n. a tell. A red flag when requested by a rep. It's a flaming red flag when requested by a rep before they've even engaged with the customer. It's a flaming red flag on … [Read More...]
Price Floor, n. technical. 1) The deal price at which you no longer need a Sales Rep; 2) The deal price which, if you did all deals at, you would no longer need a Sales Department. … [Read More...]
Disruptive pricing, n. gerund, aspirational. When striving for consistent and predictable outcomes just won't do. Get your disruptive pricing in first, before the opposition does. … [Read More...]
