When a one cent swing in pricing can change company profits by hundreds of thousands and even millions of dollars, the results can be incredibly rewarding or utterly devastating. Setting a price that creates advantage for the business and value for the customer has three main components: identifying customers’ perception of product value and their buying preferences by market segment; assessing all cost components, including identifying hidden costs and forecasting the risk of supplier price changes; and, establishing and communicating target pricing that creates organizational discipline and accountabilities to maintain profit thresholds. Pricing for value is one of the four fundamentals of revenue growth. In the video above, Laurie Brunner explains more.
