4 ms·
This 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
by Revisor 15y ago
This 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. ;-)