Be afraid. Be very afraid. Pricing is getting scary, says Jon Manning, founder & managing director of Pricing Prophets and resident pricing expert for Upstream Commerce in this dynamite video about ten things retailers should worry about with regard to competitive pricing today. If you can get past the occasional expressive language, you’ll find a @#$%load (lode) of astute observations by Jon, the ever-observant, tell-it-like-it-is expert pricing consultant. This is episode eight in the series of "Ten Things" presentations, in which Manning looks at “Ten Reasons Why You Should Be S*** Scared About Pricing":
Manning nails it on all ten counts:
10. Customers know more about marketers than marketers know about their customers. Your customers have never had more power than they have today. They grew up using social media, and continue to utilize it for a strong position vs. retailers.
9. 70% of all purchasing decisions are researched online, notes Manning, including researching the price. In Australia, 5% of retailing is now conducted online; in the US, nearly 10%, and in the UK it’s approaching 20%. Price is the most quantifiable element of your process.
8. Scan & Scram. Customers are still shopping in-stores, but using smartphones to scan a product’s barcode, and then go and buy it cheaper somewhere else, i.e. online.
7. Customers don’t like price increases (surprises), and will now tell everyone about it on Social Media.
6. Automatic refunds. There are all sorts of price guarantees, such as, we’ll match, we’ll beat, we’ll compete on price. But a lot of work for the customer to follow up. There’s a company that chases down refunds for you.
5. Make pricing errors at your peril. (There was a site that posted real-time pricing error alerts for consumers to pounce on -- maybe there’ll be more of these again in the future).
4. Don’t outsource your pricing to your competition. Instead of trying to match competitive prices, let your customers name the products they want, and the prices they want to pay.
3. The customer wants a solution, not your time.
2. Your customers want you to attend to the details and answer their questions -- in business-to-business pricing,
1. Don't let your pricing be co-opted by your procurement costs! Do you have a pricing department AND a procurement department??? Many companies are too worried about the prices they pay for goods and services than they are in getting a profit for providing goods and services to the customer.
And there you have it. Let me have your thoughts on the "scariness" of pricing these days. Thanks. Gilon