Pricing your entire portfolio, one product/service at a time.
Performance pricers make attractive returns in almost every business, at least over the full business cycle. There are likely to be periods in a major downturn when even the best will have low returns, but these firms know that price cuts are almost always a one-way street, and they do not sacrifice their long-term viability and positioning for short-term volume. The research should also encourage managers to disaggregate their markets and seek out the differences and opportunities often hidden in current pieces of business.
So, look at your portfolio of products or services. Make a list of them, and figure out which need to be discounted to move (slow sellers, strong competition, outdated, short shelf life); which have prices that need to remain stable for long term viability; and which could actually incorporate additional features to promote their premium nature.
Pricing Question #5: What proportion of your volume comes from:
1. Discount necessary products/services
2. Pricing stable products/services
3. Incremental feature premium pricing
No comments:
Post a Comment