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Memecast #52: Fixed Costs

Memecast #52: Fixed Costs

FromImpact Pricing


Memecast #52: Fixed Costs

FromImpact Pricing

ratings:
Length:
2 minutes
Released:
Apr 6, 2022
Format:
Podcast episode

Description

This one may be intuitive, may not be intuitive, but it turns out that if your fixed costs change, for whatever reason, if they go up, if they go down, it really should have no impact whatsoever on your pricing. For example, let's say you need to buy a new piece of factory equipment, and it's really expensive, and it makes your fixed cost go way up. Did buying that new piece of factory equipment for you change your customer's willingness to pay? No, it didn't. Customers are still willing to pay the same amount. They still can choose between you and a competitor. Well, did you changing your fixed costs changed the way your competitor prices for whatever reason? No, it doesn't. The only thing that matters to us when we're doing pricing is thinking about how our customers are making decisions and how we can make optimal decisions based on that. And I can assure you that your fixed costs have absolutely nothing to do with how much your customers are willing to pay. For that reason, your fixed costs never matter to pricing. We hope you enjoyed this memecast. If you have any questions or feedback, please email me mark@impactpricing.com. Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/
Released:
Apr 6, 2022
Format:
Podcast episode

Titles in the series (100)

The Impact Pricing Podcast will help you win more business at higher prices by teaching you about pricing and value. Once you understand how your buyers perceive the value of your product, you can build, market and sell products that win at higher prices. Pricing is really about creating, communicating and capturing value.