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Pricing: Why you're doing it wrong
- Revisor 15y agoThis is a better article than it sounds from the title. It sums up the most important principles I read in pricing books (of which I recommend The Strategy and Tactics of Pricing: http://www.amazon.com/The-Strategy-Tactics-Pricing-Edition/dp/0136106811/ref=sr_1_1?ie=UTF8&qid=1331943839&sr=8-1 http://www.amazon.com/The-Strategy-Tactics-Pricing-Edition/d... ) Just copying the pricing mistakes from the subheadings (parens are mine): * You’re pricing based on costs (but costs change with volume which is dependent on price) * You have no idea what your value is (so you guess based on their reactions and your gut feelings) * You are trying to be cheaper, not better or different (and you lose the pricing war) * You don’t believe in your own value (and you feel apologetic when giving a quote) * You fear price objections * You surprise your prospects with your price * You have no plan for negotiation * You think you need one price (you don't segment your customers and leave a lot of value on the table and/or outprice some potential low-effort customers) * You’re too busy (by underpricing yourself)
- reubenswartz 15y agoThanks for the summary. Perhaps I should have just written that and saved myself and everyone who read it a whole lot of time. ;-)
- deleted 15y ago[deleted]