pricing strategy

Article archives from the Pricing Pricing Society

Getting Everyone Onboard for Price Increases

Customers want the best value, not necessarily the best price. Our job is to justify the price based on the value we deliver. Often customers do not know or purposely ignore this. This includes the product, services, support, and terms and conditions we offer. Getting a lower price from a competitor is not the same as getting the “same value” at a lower price. Knowing and communicating your unique value proposition is key in implementing price increases, as the author explains.

By |2022-12-27T21:54:03+00:00December 31, 2022|Price Increases, Price Management, Pricing Articles|0 Comments

Something’s coming: How US companies can build resilience, survive a downturn, and thrive in the next cycle

The U.S. economy continues to throw off mixed signals. But one thing is becoming clear: executives should prepare for an extended period of higher interest rates. This article was originally published on September 16th, 2022. This article represents views from McKinsey’s Risk and Resilience Practice, Strategy and Corporate Finance Practice, and McKinsey Transformation.

By |2022-11-07T22:58:58+00:00October 31, 2022|Inflation Pricing, Pricing Articles, Recession Pricing|0 Comments

Pricing with Confidence: Second Edition

This article on “the inflation imperative” is an excerpt from the second edition of Pricing with Confidence, due to be published in October 2022. Pricing with Confidence: Ten Rules for Increasing Profits and Staying Ahead of Inflation was written by Reed K. Holden and Jeet Mukherjee of Holden Advisors, with the intent to provide readers with the tools and resources required to build an organization that executes well in the face of volatility.

Solving the Paradox of Fair Prices

Charging different prices is often fairer than charging everyone the same price. While there are no standard answers to the question of what makes a price fair, business leaders can embrace market transparency, understand what drives the perceptions of fairness in their market, and ensure that they offer prices that customers will perceive as fair. With the right understanding and the right approach, companies can vary prices in ways that mutually benefit themselves and customers, and perhaps society as well, as the author explains.

Economy Pricing Strategy: What Is It and When to Use It?

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.

By |2022-11-07T23:39:52+00:00June 30, 2022|Pricing Articles, Pricing Strategy|0 Comments

Pricing and Inflation: Digging deeper to understand

Inflation is nothing new. We have observed inflationary tendencies in many countries, at least since the gold standard was abandoned in 1971. However, in today’s global economy, the inflation traffic light is on deep red. For pricing executives, all the warning signals should be ringing. In the current economic situation, one can make catastrophic pricing mistakes, but there are also opportunities to escape relatively unscathed if one gets it right, as the author explains.

By |2022-10-27T22:03:36+00:00April 30, 2022|Inflation Pricing, Pricing Articles|0 Comments

How to Choose a Pricing Metric

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.

By |2022-10-27T19:59:51+00:00January 31, 2022|Pricing Articles, Pricing Strategy|0 Comments

When Pricing, Don’t Forget Your Story

Pricing professionals have many tools in their toolboxes, but in this article, the author reminds pricers to not underestimate the power of storytelling in pricing projects. Shepherding a management decision can be difficult. Without a story that goes beyond presenting pricing analysis and clearly communicates the results of the analysis, it is nearly impossible.

By |2022-03-23T21:25:41+00:00October 31, 2021|Pricing Articles, Pricing Skills|0 Comments
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