Our new podcast season is all about pricing. And this episode looks at what can go terribly wrong when setting a price
The vast majority of B2B price-setters do not use the full arsenal of pricing methods available to them. They tend to make certain (wrong) assumptions about the value customers ascribe to their various options. They often default to easier methods that seem to make logical sense but that often leave money on the table.
The team discusses the three major ways that B2B organizations set price, and what can go wrong — and right — with each approach.
In this episode you will learn:
- The dangers of “cost plus” pricing strategies
- How combining three different pricing approaches optimizes your margins
- Examples of how even commodities can use customer value-based pricing strategies
Here are some quotes from the team’s discussion:
“Exclusively using a cost-plus pricing approach is a trap that many businesses fall into.”
“Relying only on competitor-based pricing methods can lead to a ‘race to the bottom.'”
“Customer value-based pricing methods are only as good as your tools for measuring customer’s perceptions of your offerings.”
We hope you enjoy the discussion and gain some helpful insights!