Eight essential questions while pricing a product / service
Eight essential questions
Below are some introductory pricing diagnostic questions you can ask within your organization to help kick-start the 1% mindset approach while you are pricing a product / service
1. What are your pricing objectives?
* What is your companyﾾﾙs overall strategy, core values, and mission?
* Do your pricing strategies link with them?
* Are there examples in which pricing practices conflict with your core values?
2. How would you describe your current pricing process?
* From start to finish, how would you map this process?
* Are there approvals or built-in checkpoints?
* Does this process differ in regards to bids versus day-to-day pricing?
3. How is your pricing strategy determined?
* Who is involved?
* What factors are considered?
* Are customer pricing breakdowns taken into consideration within revenue/margin planning sessions?
* What strategy is applied across different product lines?
4. What is your marketing strategy?
* Do you perform market segmentation studies, or do you take a gut-feel approach to who your customers are?
* How does each segment value your products? How does the value relate to
* Is your sales organization trained to sell based on value?
5. Who is responsible and accountable for pricing?
* How much attention does pricing receive within the company?
* Are there gaps in the pricing expectations of various company stakeholders?
* Is there an advantage to having a dedicated pricing analyst or pricing manager?
6. What type of analysis is performed on pricing?
* Does your company often rely on gut-feel pricing?
* Are market research, pilot tests, and transactional analysis components of your pricing analysis?
* Are costing and competitive analysis integrated with your pricing?
7. How do you measure pricing results?
* How often do you review your pricing, and who is involved in this process?
* Does your company monitor how much sales negotiations occur during a sale, and how that affects final prices?
8. What is the current process to review and improve pricing?
* How often, if ever, are reviews performed?
* Are early warning pricing reports provided to highlight potentially negative trends?