Creating and Destroying Value

I read Seth Godin’s blog every day.  Many days, what he says relates directly to pricing. Today’s blog—Is There a Marketing Person Leading the IT Team—is just one of those blogs.  

He provides a few horrendous examples of companies interacting with their customers. In these cases, they are all the result of IT making decisions on what is easy for them to do, not what the customers really want.  

This is a great reminder that everyone in your company can create or destroy value. Every customer touch point creates or destroys value. You may have a great product and market it well, but if your company is hard to do business with, many people will choose to not do business with you.  

As a pricing person, I think about it this way: “How much lower would I have to price my product to entice someone who doesn’t want to do business with us to change their mind?” All pricing does is capture value.  If your company destroys it through horrendous IT decisions, there’s less to capture, meaning we have to charge lower prices to win an affected customer.

Share on twitter
Share on facebook
Share on linkedin
Mark Stiving

Mark Stiving

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

Related Content

Black Box Feature Image

From the “Black Box” to the Sandbox: Advancing Product Management and Design Collaboration

For product and design teams, a “black box” understanding of each other’s functions can create problems like poor communication and lack of trust, resulting in inferior products. Pragmatic Institute’s design practice directors explain how both groups can move into the sandbox: a space to build new things together. Learn how an intentional approach to collaboration will help you improve product quality and your team’s efficiency in achieving market-winning, delightful solutions.


Training on Your Schedule

Fill out the form today and our sales team will help you schedule your private Pragmatic training today.

Stay Informed

Sign up to stay up-to-date on the latest industry best practices. Get content such as:

    • The Pragmatic – Industry insider magazine
    • The ever-growing webinar series 
    • Our world-class podcast series