Manning's back! In Ten Better Ways To Frame Your Pricing, Jon Manning, Founder & Managing Director of Pricing Prophets, says that finding better ways to frame or position your pricing could mean the difference between a successful and an unsuccessful product, winning or losing the business, or profit and loss. Jon is also Upstream Commerce's Resident Pricing Expert, so if it's pricing intelligence help you need, via competitor price tracking, monitoring, and analysis, give a shout.
Here's a summary of Jon's Ten Better Ways To Frame Your Pricing, to which he adds lots of pricing ideas and examples in the video:
1. Don’t over-complicate your pricing -- Avoid complex algorithms.
2. Don’t frame your pricing around costs -- People worry about costs because you haven't given them something else to think about (like value).
3. Talk about values instead -- What are the hallmarks of a good value proposition?
4. Know your customer and your competition -- Value is in the eyes of the beholder.
5. Try and link your pricing to a customer value metric.
6. Manage discounting -- Give and get. If you give a special price, get something in return.
7. Don’t condition your customers -- Sales too frequently and predictably ruin the basic premise of sales and promotions.
8. Consider selling a good as a service.
9. Understand behavioural economics -- What customers say and what they do should affect your pricing strategy.
10. How to negotiate with a Pit-bull -- Play the peacekeeper; don't get into an adversarial relationship. Propose ways to share the profit savings.
And there you have it. Jon Manning's eleventh installation in his pricing series -- from Don't Overcomplicate Your Pricing to How To Negotiate With A Pit-Bull.