PivotalPM Pricing for Sales Execs

Pricing for Success

Your approach to pricing: strategic or tactical?
The Pricing Program
Internal Inputs:
External Inputs:
Pricing Objectives
Customer Demand
Overall Company Objectives & Strategies
Pricing Strategy
Competitor Actions
Production and Deliver Costs
Pricing Structure
Legal Constraints
Pricing Levels/Tactics
© Pivotal Product Management LLC www.pivotalpm.com
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What’s your key concern when pricing?
Cost
Determine desired gross margin and profit margin
Market
Check competitors
Check customers – price sensitivity studies
Value
Based on customer perception of value
Use industry or customer metrics to quantify savings and/or increased revenue
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What’s your pricing strategy?
Skimming
Neutral
Penetration
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Pricing’s Role in Positioning
Price
Promotion
Product
Place
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How do you uncover value?
“Pricing With Confidence”
- Holden, Burton
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To Change the Price, Change the Value
Price Increases
Bundle
Add features (value)
Add options
Price Decreases
Unbundle
Remove features
Make components optional
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Design flexibility into the product

More Critical Pricing Questions
Who is involved in pricing in your organization?
Can every sales person explain all of the value in your offerings?
Have you lowered your prices because of the economy?
With or without changes in the product/service?
What happens to profits?
What’s your discounting policy?
How often do you need to discount to close deals?
What happens to profits?
Are sales staff compensated on revenue or profit?
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My Favorite Pricing Resource
Pricing with Confidence
10 Ways to Stop Leaving Money on the Table
Reed Holden and Mark Burton
www.holdenadvisors.com – sign up for the newsletter!
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Pivotal Product Management
We deliver product managementskills assessment, training, consulting and coaching for greater product success.
Linda Merrick, CPM, ACPM
Mara Krieps, CPM, ACPM
lindam@pivotalpm.com
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What are YOUR pricing challenges?
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PivotalPM Pricing for Sales Execs

by Pivotal Product Management, LLC on Feb 25, 2011

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PivotalPM Pricing for Sales Execs — Presentation Transcript