Are you pricing on value? | Issue #219
How to accelerate your business growth through value-based pricing
Do you charge all your customers the same price? Be honest here. And did you reach that price by looking at your costs-in and adding a healthy margin? This form of cost-based pricing is pretty common. We find it in most businesses when we start coaching them, particularly when they sell commodities.
But by doing this, you’re missing a trick. Credit must go to Blair Enns for his book ‘Pricing Creativity: A Guide to Profit Beyond the Billable Hour.’ In it, he articulates a view beautifully that I have held for some time. If you want to scale your business quickly, you need to charge based on the value your company represents to customers rather than cost.
‘That’s all very well,’ you may say. ‘But how?’ Let me give you some suggestions.
How To Better Prepare To Combat Inflation, with Hermann Simon
Inflation is back and here to stay. For companies, this ‘new normal’ means that the world in which they do business has fundamentally changed. Their main priority is to discover and apply new strategies to ensure their survival.
Hermann Simon is a renowned speaker, founder and honorary chairman of the world’s number-one pricing consultancy, Simon-Kucher & Partners. His impressive background and expertise in strategy and marketing make him one of the world’s most influential management thinkers and an invaluable source of knowledge on globalization, profit orientation, corporate strategy, world market leadership and pricing.
This week, he joined us for a new episode of The Melting Pot to share some insights into his new book, Beating Inflation. This guide is a solution to the current economic downturn, exacerbated by the global pandemic and the war between Ukraine and Russia. We talked about increasing costs and pricing, how often companies should increase their prices, so they don’t put too much strain on their clients and how to prepare their sales teams to combat inflation.
A conversation you don’t want to miss. Download and listen today.
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Beating Inflation: An Agile, Concrete and Effective Corporate Guide
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Quote of the week
“Your customers are the judge, jury and executioner of your value proposition. They will be merciless if you don’t find it!”
Alexander Osterwalder
Dominic Monkhouse
Dominic offers business coaching and management development, strategy planning and organisational change, using tried and tested methods to launch your organisation onto an unparalleled growth trajectory. His programme is a function of his broad experience, his deep expertise and a proven process used by over 2,700 firms worldwide.