Your source for COUNTER-INTUITIVE pricing strategies.
B2B Challenges
Business to Business selling offers a broad array of pricing/sales challenges including:
- Customized offerings
- Negotiated prices
- Protracted sales processes
- Procurement’s low-price focus
- Reverse auctions
- Market segmentation
- SKU proliferation
The question is “How do we blend all of the market’s demands into a comprehensive, cohesive strategy that allows us to be competitive while growing our margins?”
Give me a call at 314-707-3771 and I’ll show you how I’ve helped others get higher prices AND simplified their pricing strategy.
Price Strategy
An effective pricing strategy goes well beyond establishing a price. You’ve got to determine:
- What your product’s price will be at each stage of its life cycle
- When you’re moving from one stage of the life cycle to the next
- How you’ll respond to changing market conditions
- What measures you’ll use to identify new market trends
- What behaviors/values are driving your most profitable customers
- How sales force compensation will affect what you sell and the margins you get
- How to create new products without cannibalizing your existing offerings
- When to obsolete your offerings
B2C Challenges
The top two challenges in Business to Consumer (B2C) sales are:
- Being viewed as a commodity
- Consumers’ focus on low prices
The good news is that there are solutions to both. Doubt that? Then how do you explain the fact that:
- Mercedes Benz owners pay 7.5 times as much as Chevy Aveo owners
- A sweater costs roughly $10 at Walmart, $12-$15 at Target, $30 to $50 at JCPenney, $60 to $80 at Macy’s and $120 to $140 at Nordstrom
- Apple continues to get premium prices for its products even though competitors have launched similar offerings
