Pricing Strategy
Giving the Customer More Than They Paid For
We’ve long had the idea that a value proposition has to do with “exceeding customer expectations” or “giving the customer more than they paid for.” I’ve held that position but am questioning it. Instead, perhaps…
Profitability Per Product
I was dealing with a firm that was having problems with its profitability. Profitability had fallen over time, and management just did not know what was causing the problem. Once I understood the situation, I…
Do You Offer Customer Friendly Prices?
Do you offer customer-friendly pricing? Or, are your customers surprised to find that fees, surcharges or other costs have been added to their bill and that their total cost is more than they expected? When…
A Small Business Pricing Perspective: Higher is Better
To get a perspective on small business pricing, let’s first take imaginary strolls through the aisles of two retailers: Walmart and Saks Fifth Avenue. Both are leaders in their markets, so this isn’t a criticism…
Couponing for Greater Profits
Sometimes, customers need that little extra incentive to come calling at your small business. Consider the coupon. Long viewed as the housewives’ shopping companion (Grandma loved it when the 7-cents-off creamed corn hit the paper!),…
“We Can’t Justify Your Price…”
We were debriefing a closing call. Bill’s solution had been selected. Bill had done a great job in competing and in justifying the value of his solution. There was a strong business case demonstrating tremendous improvements…
Making a Freemium Model Work for Your Business
In today’s digital age, consumers and businesses alike are inundated with new tools that promise to make their lives and jobs easier, more efficient, more sustainable and more fun. But in a world in which…
Are You Creating Value or Cost?
There are thousands of posts and hundreds of books on Value Creation. I’ve, in fact, written 285 since starting this blog and dozens of others at other sites. The themes in all of this stuff…
3 Top Myths Surrounding Product Discounts
While you don’t want to go reducing prices at random, every now and then the payoff can be huge. Each customer has a set price they are willing to pay for your product. Unfortunately, it’s…
Value Creation as a Form of Discounting
There are all sorts of articles on creating superior differentiated value. Lots of them talk about creating more value than the customer expects, surprising and delighting them. In truth, I’ve been raised in this camp…
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