Pricing Management Best Practices

Pricing Management Best Practices

Pricing can be a tricky proposition. If we price our products too high, we may lose valuable customers. If we price too low, we leave money on the table. 

Prices are commonly in one of two ways: 1) cost plus a target margin, or 2) competitive pricing and living with the resulting margin. Value-based pricing offers a more powerful model for pricing, profitability, and performance. Using this method, we justify our pricing by: 

  • Providing high value
  • Knowing that value
  • Communicating it well and consistently to our customers
  • Confirming that our customers agree with the value exchange

When we employ value-based pricing, we can more accurately determine the value we exchange with our customers. The result: we likely have more bargaining power than we realize.  Download this tool outlining 12 Pricing Management Best Practices to take your pricing to the next level.