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Various Pricing Tips

August 7, 2009

Pricing Tips

The following points followed while create or follow the particular pricing strategy,

1. After done the pricing research, to share it with organization sales force. It will help build confidence in developed pricing strategy.

2. If sales are slow, don’t assume that price is the problem. It may be something else, in which case a price cut is not the way to go.

3. Include the sales team in the pricing strategy development process.

4. Asking good questions about customer needs helps reduce the necessity to discount.

5. Make the connection between organization offering and the customer¬タルs desired end state.

6. Never talk about price up front. The focus should always be on value. Price is the last thing need to mention when discussing a new offering.

7. Negotiate late. Giving discounts in the early stages of a deal are not as high valued as those given at the end.

8. Price objections are often a disguise for deeper concerns

9. Establish value early or will always be defending price.

10. Include a section on Pricing Strategy as part of the annual business plan.

11. When determining costs to support a pricing analysis, consider how those costs change as the volume changes.

12. Each month review the number of price overrides that are performed at the time of order entry. Zero overrides are a goal.

13. Determine the cost to serve different customer segments before decide how to price to them.

14. Use role-playing and simulations to test competitive pricing strategies

15. Measure the margin performance of sales team and reward high performers.

16. Implementing a price increase can be done in several different ways. For example, consider reducing discounts to less profitable customer segments.

17. To communicate the value being delivered after the sale is made. This will reduce price resistance the next time they buy.

18. Price optimization models and technologies are starting to penetrate most industries. Should investigate this area if not already done so.

19. Make sure that have some key performance indicators to measure your pricing effectiveness. They will give sense of control over your pricing and make sure everyone is working on the same page

20. Keep your eyes open for “system beaters”those who complain every time they buy something just to get a discount.

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2 Comments leave one →
  1. August 27, 2009 3:00 am

    yeh right.. great post, Thank You

  2. September 4, 2009 11:11 pm

    Sorry for my bad english. Intresting title. It attracted me to read the complete post. Thanks

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