Pricing is ... Win-Win

Pricing is usually seen as that step in business where companies try to trick consumers out of their money.  Although in some circumstances this may be correct, I much prefer to think about the win-win aspects.  Your customer wins and you win. Customer:  Someone only buys a product (or service) when they get more value than the price they have to pay.  This means whenever a purchase is made, whenever a customer exchanges cash for a product, the customer receives more value than it cost him or her.  Of course, otherwise they wouldn't have made the purchase. When you set a price for your product you must choose a price below your customers' willingness to pay.  Otherwise they won't purchase from you. Company:  From your company's perspective, you win when you charge more for your products than they cost.  That is the only way to make a profit and stay in business. The customer wins with excess value.  Your company wins with profit margin.  It's a win-win.  Pricing is such a great job. If you enjoy these blogs, sign up for The Pricing Perspective, a monthly newsletter that provides links to the previous month's blogs, a Q&A on pricing, and other interesting sections.  Sign up on the right column or at Mark Stiving, Ph.D. - Small Business Pricing Expert Photo by Search Engine People Blog
Mark Stiving

Mark Stiving

Mark Stiving is chief pricing educator with Impact Pricing LLC. Connect with him on LinkedIn

(0) Comments

Looking for the latest in product and data science? Get our articles, webinars and podcasts.