Creating and Destroying Value

I read Seth Godin’s blog every day.  Many days, what he says relates directly to pricing. Today’s blog—Is There a Marketing Person Leading the IT Team—is just one of those blogs.  

He provides a few horrendous examples of companies interacting with their customers. In these cases, they are all the result of IT making decisions on what is easy for them to do, not what the customers really want.  

This is a great reminder that everyone in your company can create or destroy value. Every customer touch point creates or destroys value. You may have a great product and market it well, but if your company is hard to do business with, many people will choose to not do business with you.  

As a pricing person, I think about it this way: “How much lower would I have to price my product to entice someone who doesn’t want to do business with us to change their mind?” All pricing does is capture value.  If your company destroys it through horrendous IT decisions, there’s less to capture, meaning we have to charge lower prices to win an affected customer.

Mark Stiving

Mark Stiving

Mark Stiving is an instructor at Pragmatic Institute with more than 20 years of experience in business startup, development, management, turnaround and sales and design engineering. He has helped companies create and implement new pricing strategies to capture more from the value they create, and has consulted with Cisco, Procter & Gamble, Grimes Aerospace, Rogers Corporation and many small businesses and entrepreneurial ventures. He has led pricing initiatives as director of pricing at Maxim Integrated and as a member of technical staff at National Semiconductor. Mark also has served as president of both Home Director Inc. and Destiny Networks Inc. and as an assistant professor of marketing at The Ohio State University. Mark also is the author of “Impact Pricing: Your Blueprint to Driving Profits” (Entrepreneur Press, 2011). He can be reached at mstiving@pragmaticmarketing.com.


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