In 2021 there were more than 2,000 mergers with a deal value of more than $100 million in the US (from Statista). The received wisdom, supported by a fair amount of evidence, is that mergers often destroy value. There are many reasons for this, but one of them is pricing. Pricing is where buyers give a verdict on your offers and whether or not they are valuable. Alignment on pricing is critical to a successful merger, as the author explains.
Getting ahead of rising prices in an inflationary environment is one thing; staying ahead is another. Data, technology, and savvy management can turn cost pressures into pricing opportunities, as the authors explain. Although focused on private equity, this article provides insights that can be applied by pricers dealing with the challenges of widespread inflation.
In the world of subscriptions, customers typically pay a fixed amount in regular intervals after having made a purchase decision on a pricing page from a set of available plans, usually differentiated by feature or time commitment. With a dollar in the future not being the same as a dollar today due to record rising inflation, the $20/month you charge customers will be worth less and less in real terms over time. While rising inflation is a legitimate concern for SaaS companies, its effects can be mitigated by planning ahead and adapting prices the right way.
Just as the pandemic is (HOPEFULLY) winding down, a new crop of business challenges has arrived. These challenges include the war in Ukraine, inflation, and the possibility of wider global conflict. Now is not the time to ignore your pricing. If anything, challenging business conditions are one of the most important times to review your pricing performance and pricing strategy, as the author explains.
An economy pricing strategy sets prices at the bare minimum to make a small profit, but the idea is to make the bare minimum as many times possible by selling as much volume of your products as possible. In this article, the author explains economy pricing strategy, its benefits for companies seeking to keep overhead and operating costs low, and factors to determine whether it is a viable business strategy for your organization.
This article is a sneak peek at Per Sjofors’ upcoming book “The Price Whisperer.” You can order a copy here. This book explores the complex network of variables that regulate customer perception of price and value, that is, why people buy one product and not another. By isolating key factors that determine a target market’s willingness to pay, businesses can effectively hack their existing model, thereby increasing asking price and sales volume.
With rising prices, raw material costs, and energy expenses, it’s safe to say goods are more expensive than they have been in years. And there seems to be no relief in sight. In this article, the authors explore best practices for pricers in both B2B and B2C industries to grow profits despite inflation.
Demand for pricing software has continued to grow as companies strive for a more data-driven pricing approach. As a result, the market has increased, multiple providers have emerged, and total purchasing and implementation costs for pricing software systems have rapidly increased. With such a high upfront investment, one would think the returns would justify the cost. Unfortunately, 92% of pricing software fail to meet targeted KPIs within three years. In this article, the author examines the reasons behind these failing trends.
Supply chain disruptions, rising energy costs, and increased consumer demand are driving inflation rates up to levels not seen in decades. However, even after months of increases, many companies are struggling to respond effectively to the situation. To learn more about their perspective, Simon-Kucher & Partners undertook a global Inflation Pricing Study and developed this 9-step process for companies trying to navigate pricing amidst these economic challenges.
Additional fees can serve a positive business function, and increase profitability, but they can also create unnecessary problems if handled poorly. For executives, it is best to consider additional fees from a clear-eyed perspective rather than gut reactions of recoiling in fear or aggressively fulfilling one’s greed, as the author explains.