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Why Value-Based Pricing is Overrated

Over the last ten years what percentage of the revenues and profits of the Fortune 500, Russell 2000 or any other group you choose can be attributed to the adoption of value-based pricing?

Pricing is ... Information

Price is more than just what the customer needs to buy your product or service. It is also telling the customer more about your offering. Take care that your prices are telling them what you want.

Why You Should Never Discount Your Prices

Why You Should Never Discount Your Prices
Copyright © 2006 Mark Silver

It seems like such an easy fix: "25% off!" "Buy now and I'll reduce the price by $100!" Discounting as a selling tactic seems as natural and easy as all get-out.

Which is why you should never, ever discount.

Pondering Price: Pay by the Pound or Pay for the Promise?

The 10 Commandments for Selling Professional Services
Pondering Price: Pay by the Pound or Pay for the Promise?

Sell the way your clients want to buy

by James A. Alexander, Ed.D.

Assuming that your service offering is a good match for your clients? needs, nothing has more impact on your overall profitability than your pricing. The leaders of professional services organizations understand this?in my latest research pricing was the number one marketing critical issue. (See Figure1.)

Pricing for Software Product Managers

Pricing for Software Product Managers
Daniel Shefer - Director, Product Architecture
SanDisk, Secure Content Solutions

The Need for Pricing Tactics

Pricing has far reaching effects beyond the cost of the product. Pricing is just as much a positioning statement as a definition of the cost to buy. Pricing defines the entry threshold: who your buyers are and their sensitivities, which competitors you will encounter, who you will be negotiating when selling the product and what the customers? expectations will be.

Software Product and Pricing Strategies

Software Product and Pricing Strategies
Daniel Shefer
Director, Product Architecture
MDRM
[email protected]

'The price point defines the sales model. It has to be simple, and you have to know how to make money with it'   -- industry pricing consultant

Pricing has far reaching effects beyond the cost of the product. Pricing is just as much a positioning statement as a definition of the cost to buy. Pricing defines the entry threshold: who your buyers are and their sensitivities, which competitors you will encounter, who you will be negotiating with and what the customers? expectations will be.

The most important thing in developing any marketing strategy, including pricing strategy, is to understand as much as possible about current and potential customers. The more you know about their motivations, sensitivities, needs, and their own customers, the more likely you will be to maximize both the effectiveness of your product as well as your own revenue stream.

The purpose of this article is to explore the interrelation between product and pricing.

Pricing Tips to Compete with the Irrational

Pricing Tips to Compete with the Irrational
by Therese Padilla

Part I of a 3-part series

I once asked my business unit director, how can we deal with our stupid competitors? Now before you start thinking that I was afraid of competition, that was not the case. (In reality, I am a fierce competitor and steep competition makes me a better product manager.) I am talking about those companies who aggressively drive prices down to keep a piece of business. You know, the ones who believe winning volume means dropping prices below cost. During the late 90's and early 00's it was called, 'customer acquisition'. Eric Gagnon calls it the 'great wealth transfer'. No matter what you call it, I call it 'stupid competitiveness'.

At the time, I was referring to my competitors who were offering 10 year corporate licenses at single year prices and offering $0 net cost rebates at retail. If this sounds like your experience, then you have irrational, stupid competitors. Why are these companies so stupid? Most of our competitors were responding to shareware competition. These were products that performed well, but didn't offer a lot of extended value.

8 Ways to Differentiate Your Product Offering in Price-Driven and Commodity Markets

8 Ways to Differentiate Your Product Offering in Price-Driven and Commodity Markets
Selling on Value in a Wal-Mart World, part II
by Steve Rankel

In part I, we talked about how to use Value Pricing to Sell Value in A Wal-Mart World. The reality for some of us is we are STILL in commodity and fiercely competitive markets where the market seems to dictate the price, and where our only decision seems to be accept the price or get out of the market.

Value Pricing: Selling on Value in a Wal-Mart World

Value Pricing: Selling on Value in a Wal-Mart World
How to avoid giving your products away
by Steve Rankel

Oscar Wilde once said ?A fool is someone who knows the price of everything but the value of nothing.? We live in a world that seems more often to focus on price and not value. Today, 2.5 cents of every dollar spent in the US is at Wal-Mart (the low price leader) creating a trend marketers need to fight against. No one is immune to the Wal-Mart effect. Wal-Mart sets the pace and pattern for corporate performance. Fortune's Jerry Useem writes, "How Wal-Mart thinks has never been a big mystery. Buy stuff at the lowest cost possible, pass the gains on to the consumer through super-low prices, and watch the stuff fly off the shelf at insane velocity."

How can you sell value in a Wal-Mart world and avoid giving your products and services away in bidding wars? Let?s talk about it.

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