Pricing for International Distribution Channels
A student sent in this question:
Hi Mark, my name is …, and I took your Pragmatic Pricing course in August of 2014. I have a question about pricing that I was hoping you could help me out with.
I currently manage an international sales team and distributor network that we sell our software products through outside of the US. I held an international sales team summit this week with the goal of invigorating some stalled international sales performance. We had a discussion around establishing regional pricing for our distributors. The idea was that there are models for channel selling that set different prices for a specific region based on the value of our products that that region will bear. Do you have any guidance on establishing specialized list pricing for distributors based on any past experience you have?
Does it always just simply fall back on value-based pricing – i.e. we should price our products based on the perceived differential value that that our customers IN A SPECIFIC REGION have?
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