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Pricing Strategy
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…
CLV versus EVC
The concept of CLV or customer lifetime value has been used for many years to describe the value of a particular customer or customer segment to a company.
Subscription Business Models Are Startup Favorites
Every new business quickly realizes that revenue coming in every period on a committed basis is the Holy Grail to survival and growth. According to many experts, getting new customers is five to ten times harder than getting additional revenue from existing customers.
Has “Sale” Become a Four-Letter Word?
There is a growing awareness in retail that a once surefire way to save the day is gone forever. When all else failed, retailers could always compete on price. Those days, in the words of the old song, are dwindling down to a precious few.
When All Else is Equal, the Lowest Price Wins!
When the customer perceives little difference between alternative solutions from vendors, the lowest price wins! And that’s how it should be, it would be insane for the customer to do anything else.
How to Protect Gross Margin with a Service Business
When you’re in a service business your cost of goods sold is really your cost of sales or the value of your time since you don’t have a physical product.
When Should a Small Business Focus on Growth over Profits?
Profits are today, and growth is tomorrow. You need today assured by cash flow, but don’t sacrifice more today than you have to when you pay for it with tomorrow. Find the right level.
Why You Should Consider Giving Your Product Away for Free
In June, my company Testive announced that we were dropping the pay wall on our online SAT and ACT prep products. No limits. No locked content. No ads. Don’t be confused—we did this to grow our business, not shrink it. So far it’s working—we’ve had record sales every month since then. Here’s what we learned.
Pricing, Networking, and Value
Jenni from the Quick Books Self Employed Community says the following: “I always feel like my prices are too high, yet when I see my competition, their prices are almost double mine.”
When Profits Collapse, Don’t Turn to Discounting
I’ve been in the business world for over 40 years and I’ve lost count of the number of times that discounting has exacerbated a sales decline it was intended to avert. Conversely, I’ve seen sale declines turn around with amazing alacrity through more focused, value-oriented marketing messages.
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