The 80 /20 business model is not just about squeezing out the complex customers/product lines that only makeup 20% of your revenue. It is also about extracting more value out of those who make up the critical 80% with value-based pricing strategies, as the author explains.
In this article, the author addresses sales people and explains how individual pricing choices, made to win deals or accomplish other types of gross profit or gross margin goals actually affects their personal sales performance. He also provides best practices for using pricing intelligently and profitably in sales.
Dynamic pricing has been growing significantly in recent years, notably in the travel and online retail industries. Would this pricing strategy benefit your company’s products? In this article, the authors review common mistakes to avoid when moving to dynamic pricing and best practices for implementing dynamic pricing within your organization.
As pricers, we are analytics people and get very excited about the data that we collect and analyze, only to be frustrated when the rest of our organization doesn’t understand our enthusiasm for our data analytics and resulting pricing strategies. How do we take our insights and convert them into initiatives that our whole organization will support?
The topic of tariffs has recently gained momentum throughout the pricing space, and specifically in industrial and manufacturing markets. To help pricing professionals grapple with some of the complexities of tariffs, and view them as an opportunity to evaluate cost structure and explore opportunities to tighten up pricing processes, in this article, the author has outlined a 3-Step process to help guide price adjustment decisions and strategy.
The purpose of this paper is to briefly present the two commonly-used business model canvases and to introduce the Pricing Model Innovation Canvas that can be used by pricing, innovation, and marketing teams to better frame their pricing model(s) and to make better pricing decisions.
In this article, the author shares his own personal journey of how he entered the pricing profession, and shares lessons learned from his own experiences in building his pricing career. He also presents key questions for any new pricer to answer in order to build their own pricing journey roadmap for success.
In a market with increasing competition and decreasing customer loyalty, companies are increasingly moving towards more flexible and predictable subscription models and searching for new ways to engage customers with subscription models over the long term. In this article, the authors present five tips to overcome the challenges of moving to a subscription model and defining a successful pricing strategy.
The era of the 1% rule, the long-term benchmark for the benefits of strategic pricing, is rapidly ending. The much greater pricing opportunities for firms today are in innovation and transformation. In this article, the author explains the reasons for this shift and presents strategies for developing pricing strategies for this new pricing landscape.
Elasticity can be a powerful tool in the kit of a pricer, but used without critical thinking, it can be a very dangerous one, reinforcing bad behavior and even precipitating price wars. While elasticity is a very useful concept, it should be utilized with care for three reasons, as the author explains.