Many business owners and sales reps hate price objections. They view price objections as some kind of faux pas that they should have avoided, an awkward situation, best resolved quickly (and often with huge damage to profits). Do you like price objections? When was the last time you heard one? (I recently spoke to the [...]
How can you charge more for a commodity? Here’s one of my favorite examples. 24 ounces of ketchup at $0.07/oz. Turn that idea on its head. 32 ounces at $0.079/oz. The price per unit goes up almost 13%. Not bad for a commodity. Note that the different sizes make it harder for buyers to know [...]
Twitter is abuzz with the anguished cries of Netflix customers, many of whom will soon be paying $16 per month instead of $10 per month for movie rentals. Many others have angrily threatened to cancel their subscriptions. Instead of focusing on that, though, let’s look at how Netflix could raise prices by 60% (for some [...]
I’m a big fan of automating pricing tasks. Companies spend way too much time on mundane issues like moving pricing information from one system (or spreadsheet) to another, and far too little time really thinking strategically about price and value. A few simple automation steps can free up time and money for those strategic activities, [...]
Sadly, this will seem awfully familiar to some businesses we’ve seen.
Your price ceiling is limited by the Perceived Differential Value of your offering. Customers determine this, but you can help them along the way. Your price floor is limited by your costs. If your floor and ceiling are the same height, you are going to get squished. Never limit yourself on price. This is the [...]
If you’re reading this blog, you probably know the dramatic profit impact of small price improvements. (For a company running at 10% net margin, a 1% price improvement increases profit by 10%.) Yet even when companies want to improve pricing performance, they often feel like they are at the mercy of the market. If you’re [...]
If you haven’t already, check out Gerhard Gschwandtner interviewing Ron Hubsher from the Sales Optimization Group on the sales negotiation process. Ron looks at the sales process with the same philosophy I do– namely, selling value instead of price, and using that profit increase to build a much more valuable company. However, he approaches the [...]
Twas the night before Christmas, when all the through the houseNot a hard drive was stirring, not even a mouse. The pipeline reports were tallied with careIn hopes that the revenue soon would be there. The sales teams were in hotel rooms, snug in their bedsWhile visions of commissions danced in their heads The CFO [...]
If you’re in the software industry, don’t miss SaaS University in Dallas, January 26-28. With over 30 sessions, this event provides the best opportunity for folks in the SaaS community to learn, share, and network. Get early bird pricing through December 21, and save an additional $100 with the code MIMIRAN100. One of the sessions [...]
