Managing the critical link between value proposition design and value engagement is what makes or breaks your value-based selling initiatives. In this article, the author takes a deep dive into the concept of value conversations.
Often, pricing strategies waste potential because they price products purely based on value. This article explains why this strategy falls too short and how behavioral pricing can open up additional potential for your pricing strategy.
Inflation is back, cost volatility and supply chain disruptions are continuing, and the availability and supply of raw materials are inconsistent. While these trends show no signs of abating, economic concerns are growing, and companies are wondering how they should adjust their pricing to offset constant inflation without jeopardizing future revenues. Industrial players are paying more attention to their pricing strategies to cope with inflation and ensure sustainable impact, as the authors explain.
Delivering excellence in product, placement, and promotion must be connected to excellence in the realpolitik of business in capturing pricing from real customers, as the author explains.
GP% (Gross Profit Margin) is used broadly for pricing decisions across many organizations, namely those which transition from a legacy in cost-based pricing towards a more value-based pricing approach. However, GP% is not an appropriate measure for price setting. Employing GP% in value pricing is just one of many examples where an overly simplistic compromise is often made, sometimes putting a business into bedlam, as the author explains.
One of the challenges pricers face on a daily basis is maintaining value pricing strategies in the face of sales teams dealing with customers looking to reduce costs. However, as the cases presented in this article demonstrate, sourcing and procurement teams and pricing and sales representatives don’t have to be enemies. In fact, they actually share the common goal of creating value as economically as possible.
Economists would have us believe that no price is too low. But as pricers, we know that this is not the case, as our price communicates a great deal to our customers about the value of our product or service. In this article, the author examines the importance of the price-quality effect in developing profitable pricing strategy.