Best & Worst Practices in Pricing: Strategies for Pricing Right to Attract & Keep the Best Customers

© Business Success Center, Austin, TX 2011

With Jan Triplett, Ph.D. CEO, Business Success Center

© 2011 Austin, TX

Best Practices in Pricing

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Your Passion, BSC’s Expertise

• Our Mission: to help you find your way• Providing guided growth to achieve success since 1982• Sales, marketing, & financial management focus • Clients from A-Z industries, high tech to no tech, products & services

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Your Company Focus?

B to B?B to C?

Better to be P to P

.)(. (Belly Button to Belly Button)

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Who’s your customer now?Who’s your prospect now?

Platinum Gold Silver

Bronze Lead Concrete/Radio Active Waste

Platinum & Gold — create stabilitySilver — has potentialBronze — uncertainLead — a time wasterConcrete — a business killer & never satisfiedRadio Active Waste a long-lasting reputation & confidence destroyer

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Platinum customers are…

• VisionariesSee problem as you doSee value of your solution

• AdventurousConfident in youTrust you

• DecisiveHassle-free or less hassle

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What’s Your Desired Pricing Goal?

Attract paying customers who are:• Most Lucrative• Easiest Sale

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A “Fair” Price

Customers want: To get good value, pay a fair price.

Sellers want: To give good value, get a fair price.

Dilemma: What’s fair to one; may not be fair to the other.

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What Do You Want Customers To Do?

Examples:• Try it• Stock up• Repeat buy• What else?

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Pricing Considerations

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Pricing is an emotional issue for you, your employees, & customers.

Buyer reaction to price is unpredictable.

Shoot from the hip & you’ll end up shot in the foot or worse.

One price strategy usually doesn’t fit all products/services.

Controlling costs can make a business more profitable than raising the price.

Stay alert: pricing laws & regulations change.


What You Need to Know about Pricing

Pricing should be… Pricing will…

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An attention getter and qualifier.

A way to position your company.

Perceived by your Platinum-preferred client as a benefit not just a feature.

Make you rich or at least comfortable or just sick and tired.

Affect the success of all areas of the business.

Require that you don’t just set it & forget it.


Your Price is NOT Right for EveryoneIt’s all about:1. Getting the right customer2. Keeping the right customer3. Considering their perceived risk4. Knowing your true total costs5. Identifying the top value you bring6. Accounting for long & short term goals

THEN Pricing Right & legally!

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The Big Debate

CostVsValue

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Best Practices in Pricing

• Price what you’re worth.• Use KISS pricing system.• Account for profit, contingency & hassle-factor.• Price for positioning.• Monitor & adjust.

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Worst Practices in Pricing

• Undervaluing your benefits.• Under-estimating costs.• Not considering your Platinum customer’s “Flinch Point”.• Blindly following competition.• Inconsistent pricing.• Violating laws - DTPA

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Good & Bad Pricing Examples

1.Charging $15 per hr for professional services2. Providing a $400 discount on a product3. Charging $500 for one research report4. Charging low price to get started5.Your examples?

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Here’s to your

success!Jan Triplett

[email protected]@JanTriple

ttFacebook@JanTri

plett

Business Success Center

Sales & Financial Management Services

January 15, 2011


mailto:[email protected]

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