At a time when businesses are scrambling to lower costs, many businesses are struggling with the pricing of their goods and services. The most profitable firms know that no amount of cost-cutting – or new business – can match the power of pricing. Prices are too often set by looking at the competition, picking numbers out of thin air or just adding a margin to costs. Successful businesses adopt modern pricing practices that allow them to get paid for the value they create.
But before we set price we need to understand the value. It all starts with value.
We work with innovative businesses to create a pricing strategy to build their pricing power. We help businesses move from a cost mindset to powerful pricing.
Some of the things that we cover in this process include:
- Understand what is of value to your customers
- How do you create value
- How to measure what is of value to your customer
- Modern pricing strategies
- How you must focus on effective solutions first and not efficiency
- How to harness the tools & psychology of pricing
- Focus on price not cost
- How to use options
- Why you should have somebody responsible for value
- Other strategies and tools to implement the Art of Value Pricing.
When we work with clients in this area, we are looking at pricing through the lens of value. To achieve a premium price you must be creating, communicating, delivering value to be able to capture the value in your price.
Pricing is an art. Like art, there is structure and process however the beauty is achieved by understanding the value.