The future of industry-leading companies is the value-based organization. Those companies will have an ongoing process of understanding customer needs, using that understanding throughout the organization, understanding competitors’ capabilities, and having a process to absorb that and know how to react to those things – and how to build and go to market relative to those changes, as the author explains.
In the currently unpredictable, post-COVID, inflation-plagued economy, companies are being tested on their pricing strategies and their pricing decision-making “spine.” In this article, the author analyzes recent pricing decisions by six organizations in diverse industries and outlines the potential strengths and weaknesses of each pricing approach.
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.
This paper was originally published as chapter 5 in the book called “Pricing: The New CEO Imperative” edited by Stephan Liozu.
We all know that pricing power is one of the best predictors of a company’s long-term financial success and market growth, but how do you know if you have it? Pricing power is one of those things that is very easy to identify in retrospect, but significantly more difficult to proactively create. In this article, the author explores key questions businesses should ask themselves to determine how much pricing power they actually have.