..if price is the only conversation you ever have with your customers, then that’s all they’ll ever judge you on
“price is what you pay, value is what you get- Warren Buffett”
One of the biggest issues facing all companies, in an ever increasing cost-driven global market is, how much do I charge. We are faced with it constantly, as are all of our clients. Very few escape it. Our personal view is that Marketing Director Centre has the very best of the best people, and so we offer a value that nobody else does. Our price is firm.
Big corporations will engage every ploy imaginable to increase prices, simply because it increases the bottom line by so much. Banks raise account charges by 50c, nobody notices, but it can be a 10% price increase just like that.
The real problem for most ‘ordinary’ businesses, is that they allow themselves to be constantly judged on their prices, more than anything else. So, they are either constantly driven down in price, or allow themselves little space to manoeuvre. Some businesses haven’t raised price in years, and the stress and the cracks begin to show.
Proper pricing is a key to profitability, and a business needs an outside opinion and ideas to show them how to get out of the ‘price trap’. It’s not easy going forward.
We’ll help you develop an environment that commands the best prices for your products and services.
Pricing is so important. If the only discussion you seem to be having with your customers is about price, then it could be time to change the conversation. Price is so reflective of the value perceived in the brand; the Porsche Cayenne and VW Toureg are manufactured within 30m of each other and use 80% of the same componentry, yet one is twice the price of the other.
We see many companies envious of others in the same category able to charge much more for what appears to be a similar product or service, yet without really realising why. But is it possible to change brand perception, and develop an environment where you can charge premium pricing for your particular product and grow your customer base.
The benefits of a part time Marketing Director to a CEO struggling with their pricing
Price is a big component of marketing. We need strategies to help companies grow their pricing model, and this is a constant process. In our experience, pricing needs to be worked on by an outsider who is detached from the business. What do we mean by this? If you’re a sales rep selling bricks every day, then you’re in a competitive market. Day to day, there is a general ebb and flow of orders, but the product is price sensitive.
A rep will never make his life more difficult by raising prices, because he has to deal with the day to day fallout of price increases. It takes a Head Office to make the decision, and when that happens there is a great deal of initial kicking and screaming. But, after a time, the new price becomes part of the everyday selling process, and the rep finds ways around it. If anything, they begin to sell higher priced product, because the differential has closed, which benefits everyone.
So it is with most businesses. We are likely to come in and review your pricing models, and instigate a plan to raise prices (in conjunction with other things that go along with that) that maybe music to your ears, but that some will no doubt resist. But, if it comes from an outsider, it gets enforced and becomes part of the business.
Much simpler way to implement things from your perspective.