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 www.MarkStiving.com Mark Stiving, Ph.D. - Small Business Pricing Expert Photo by Search Engine People Blog
Looking for the latest in product management news, articles, webinars, podcasts and more?