16 min listen
Pricing Table Topics: Jack of Clubs – Don't Lower Prices
FromImpact Pricing
ratings:
Length:
2 minutes
Released:
Dec 27, 2023
Format:
Podcast episode
Description
This one is the Jack of Clubs from the Impact Pricing card deck. There's almost never a good reason to lower prices. We've seen that a 1% price increase can lead to a 10% improvement in profitability. Well, the opposite is true too. A 1% price decrease could lead to a 10% decrease in profitability. And that's painful. As a general rule, I would never ever lead a price decrease. I'm not lowering my prices. And the only thing that would ever prompt me to, is if my competitors lowered their price first and I had to keep up with them. I had to match whatever price decrease they put out because they were taking too much of my share. But even if my competitors lowered their price, I wouldn't do an across the board price decrease. Instead, I would look at where is it that my competitors are taking my business. And can I do a price decrease just on that piece of business? Let's start thinking about price segmentation and market segmentation, understanding where that competitor is powerful, is available, and only lower prices in those places where we have to in order to keep our market share. But a great rule is just never lower your prices, unless you have to. We hope you enjoyed this example of Pricing Table Topics. What you just heard was done without a script. If you want to get better at speaking about pricing and value, grab a deck of our playing cards, pick a card, read the saying, talk for one to two minutes about what that card says. You'll become a better speaker and expert. Oh, and you can play games with these cards. 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:
Dec 27, 2023
Format:
Podcast episode
Titles in the series (100)
Why Companies Do not Understand Value at All with Mark Stiving and Theresa French: Mark Stiving, Ph.D., MBA, is a widely recognized pricing expert and marketing pro who teaches companies how to boost revenues and realize their true value. Theresa French is the Sales and Marketing Operations Manager at Impact Pricing. Pricing... by Impact Pricing