Pricing is ... Win-Win

Pricing is usually seen as that step in business where companies try to trick consumers out of their money.  Although in some circumstances this may be correct, I much prefer to think about the win-win aspects.  Your customer wins and you win. Customer:  Someone only buys a product (or service) when they get more value than the price they have to pay.  This means whenever a purchase is made, whenever a customer exchanges cash for a product, the customer receives more value than it cost him or her.  Of course, otherwise they wouldn't have made the purchase. When you set a price for your product you must choose a price below your customers' willingness to pay.  Otherwise they won't purchase from you. Company:  From your company's perspective, you win when you charge more for your products than they cost.  That is the only way to make a profit and stay in business. The customer wins with excess value.  Your company wins with profit margin.  It's a win-win.  Pricing is such a great job. If you enjoy these blogs, sign up for The Pricing Perspective, a monthly newsletter that provides links to the previous month's blogs, a Q&A on pricing, and other interesting sections.  Sign up on the right column or at Mark Stiving, Ph.D. - Small Business Pricing Expert Photo by Search Engine People Blog
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

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