Confessions of the Pricing Man: How Price Affects Everything

Consistent, high quality is a must: This prerequisite comes up time and again. Successful premium supplier s maintain high and very consistent quality levels. Their service must also meet the same requirements.

still needs to sell enough units to make a high profit. If the price is so high that volume remains very low, the company will struggle on the profit front.

“The perception of prices is no different than the perception of other stimuli,”

Premium pricers have strong brands: One function of these strong brands is to transform a technological advantage—which is often temporary—into a long-lasting image advantage.

Car manufacturers offer a whole list of optional accessories at additional prices. For the individual customer, putting together one’s own package of options can be a tiresome chore. It can also be a bit of a shock, once the customer tallies up the separate prices for each option and looks at the grand total. This can be a strain for the manufactur

Of course you don’t just walk into a meeting and say “how elastic do you think the demand for our product is?” You can, however, ask your team how much volume you would lose if you raised prices by 10 %. If the answer is 50 %, it means that your product has a price elasticity of 5.

The biggest challenge facing pricing in the modern world is overcapacity

Gillette practices premium pricing of the best kind: creating value through innovation, communicating that value, and then extracting it with premium price s.

A customer loyalty concept: to turn the first-time buyers into repeat customers, who have the highest lifetime value.