domingo, agosto 20, 2017

“price for profits, innovate for growth”

"For pricing to be “strategic” it must first be focused on achieving an objective. The problem is that many firms often have multiple and conflicting objectives. I remember one CEO standing in front of a sales force saying he wanted to grow revenue, profits, and market share. This company was in a highly-competitive mature business, and here’s the point: you can’t do all three with price alone. It was no wonder they weren’t making a profit. The first action is to make the objective reasonable, given customer and market conditions. Focus pricing on one thing, hence my mantra: “price for profits, innovate for growth.”
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The basis for pricing to be “strategic” requires a good understanding of:
  • how the products and associated services differ from competitors
  • what that difference is worth to customers
  • how competitors are likely to react
  • the products and services costs
  • the ability to return profits to a company"

Trecho retirado de "The Actions for Strategic Pricing"

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