Price is not a static value. Price is a dynamic range. Prices are, according to the author, points that shift dynamically back and forth on a given scale. This scale represents the market price range, or the customer's willingness to pay. In order to manage prices effectively, we need to learn from the stories behind each price point to understand why a price is where it is on that scale, as the author explains.
Ultimately, nobody is in a better position to “get pricing right” than the marketer. And when a 1% shift in price can increase profits by 12% or more, businesses can’t afford to wait for a crisis to act. Marketers that invest in their pricing capabilities, who understand their customer’s relationship with the price, and who are clear in their objectives will find themselves able to make pricing decisions before a crisis hits, with confidence in the value of their offer, as the author explains.
Choosing a pricing metric is one of the most important choices in pricing model design, and the variety of pricing metrics is as vast as the different types of solutions available and how they create value. Before choosing a pricing metric, you should know the value metrics for your product or service. Approach this with an open mind, expect to find new insights, and give it the time it requires. This is not the place to rush a decision, as the author explains.
The COVID-19 pandemic has taught us many lessons, not the least of which is the value of a reliable supply chain. If you can become a reliable supplier, it’s time to price for that ability. Once your customer internalizes your value, the conversation about your prices has completely changed. The conversation is no longer about you discounting to close the deal, but instead, about your value as a reliable supplier, as the author explains.
In response to the ongoing pandemic, inflation is putting pressure on companies operating across many industries and countries. While customers can expect fluctuations in prices, suppliers can benefit from a strategic approach for implementing these price changes. In this article, the author presents five tips for adapting your prices to an inflation environment.
Hearing about the struggles of other pricers at last month’s Professional Pricing Society 2021 Fall Virtual Conference reminded this author of obstacles that he has encountered in his own pricing projects through the years, and it made him reflect on the fact that cultivating persistence can only benefit professionals in their pricing careers. It seems that persistence is an essential characteristic for pricing, as the author explains.
With most of the global economy struggling to recover from the COVID-19 crisis, one would expect households to be tightening their budgets. But how thrifty are consumers when faced with an actual buying decision? In particular, how attentive are they to the price tag? And are they always likely to go for the cheapest option or only under certain circumstances?
In this article, the author presents a detailed process for developing compelling quantified value propositions. Stephan M. Liozu, PhD (sliozu@gmail.com), is the Founder of Value Innoruption Advisors, a consulting boutique specialized in value-based pricing, industrial pricing, digital and subscription-based pricing.
While the technology may not be in place to make price collusion a reality, price discrimination is certainly happening and is something that consumers should be aware of. To avoid being duped into paying higher prices because of location, net worth, past shopping history, etc., consumers must shop wisely, protecting as much of their purchase behavior as possible. Now more than ever, it’s important to take the time to research and compare in order to get the best possible price, as the author explains.
BCG Executive Perspectives offer insights on global topics that matter most to leaders in the public and private sectors. This edition delves into the different ways the pandemic is affecting consumption habits and what this means for companies trying to keep up. Although not pricing specific, this article presents key insights for pricers working to develop effective post-COVID pricing strategies.