Pricing Strategies Chapter 10. Three Potent Forces Image Competition Value.
A Guide to Value-based Pricing Strategies
-
Upload
the-kini-group -
Category
Data & Analytics
-
view
391 -
download
1
Transcript of A Guide to Value-based Pricing Strategies
Why Value Must Be
at theHeart of Your Pricing
insights from
2
The last time you raised
prices, how did you justify
it to your customers?
3
Most companies blame rising material costs.
This is a
BIG MISTAKE.
4
1. Difficulty of raising prices when material costs level out
2. Customers constantly asking for price decreases when material costs fluctuate
If you justify your prices on material costs, youwill inevitably run into two problems:
5
HOW TO INCREASE PRICES DURING A
MATERIAL COST DECLINE
6
Step One:Justify Price Increases in Terms of Value
7
Communicate your products’
value to your customers asprice rationalization.
8
Emphasis on value propositions should take place
with every customer conversation.
This keeps your customers AND your sales team focused on
value.
9
Step Two:Plan Value Increases Ahead of Time
10
If you wait until price increasesare due, you cannot plan
value increases.
Start in January.
11
Step Three:Customer-Specific Value Improvements
12
1. Which customers would appreciate faster delivery?
2. Which customers would increase loyalty following more attentive customer service?
Ask yourself:
13
Better yet, ask your customers how you can create more value
for them.
14
Step Four:Get Your Sales Team on Board
15
Sales reps are often theclosest link to customers.
They need to express value inevery customer touchpoint.
16
Step Five:Analyze Your Sales Data
17
It can take a year to builda value-based approach.
Look to your data tospeed this process up.
18
Start Building Value Today
KiniMetrix helps companies leverage their sales transaction
data to build value-focused pricing strategies.
Click here to see how KiniMetrix
can do this for you.
thekinigroup.com
These tips rely on a well-strategized
price optimization strategy.
Ready to take yours to the next level?Click here to see how KiniMetrix can help.
Get Your Pricing Up to Par