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Pricing for Success<br />
Your approach to pricing:  strategic or tactical?<br />The Pricing Program<br />Internal Inputs:<br />External Inputs:<br ...
What’s your key concern when pricing?<br />Cost<br />Determine desired gross margin and profit margin<br />Market<br />Che...
What’s your pricing strategy?<br />Skimming<br />Neutral<br />Penetration<br />© Pivotal Product Management LLC    www.piv...
Pricing’s Role in Positioning<br />Price<br />Promotion<br />Product<br />Place<br />© Pivotal Product Management LLC    w...
How do you uncover value?<br />“Pricing With Confidence” <br />- Holden, Burton<br />© Pivotal Product Management LLC    w...
To Change the Price, Change the Value<br />Price Increases	<br />Bundle<br />Add features (value)<br />Add options<br />Pr...
 More Critical Pricing Questions<br />Who is involved in pricing in your organization?<br />Can every sales person explain...
My Favorite Pricing Resource<br />Pricing with Confidence<br />10 Ways to Stop Leaving  Money on the Table<br />Reed Holde...
Pivotal Product Management<br />We deliver product managementskills assessment, training, consulting and coaching for grea...
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PivotalPM Pricing for Sales Execs

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PivotalPM Pricing for Sales Execs

  1. 1. Pricing for Success<br />
  2. 2. Your approach to pricing: strategic or tactical?<br />The Pricing Program<br />Internal Inputs:<br />External Inputs:<br />Pricing Objectives<br />Customer Demand<br />Overall Company Objectives & Strategies<br />Pricing Strategy<br />Competitor Actions<br />Production and Deliver Costs<br />Pricing Structure<br />Legal Constraints<br />Pricing Levels/Tactics<br />© Pivotal Product Management LLC www.pivotalpm.com<br />2<br />
  3. 3. What’s your key concern when pricing?<br />Cost<br />Determine desired gross margin and profit margin<br />Market<br />Check competitors<br />Check customers – price sensitivity studies<br />Value<br />Based on customer perception of value<br />Use industry or customer metrics to quantify savings and/or increased revenue<br />© Pivotal Product Management LLC www.pivotalpm.com<br />3<br />
  4. 4. What’s your pricing strategy?<br />Skimming<br />Neutral<br />Penetration<br />© Pivotal Product Management LLC www.pivotalpm.com<br />4<br />
  5. 5. Pricing’s Role in Positioning<br />Price<br />Promotion<br />Product<br />Place<br />© Pivotal Product Management LLC www.pivotalpm.com<br />5<br />
  6. 6. How do you uncover value?<br />“Pricing With Confidence” <br />- Holden, Burton<br />© Pivotal Product Management LLC www.pivotalpm.com<br />6<br />
  7. 7. To Change the Price, Change the Value<br />Price Increases <br />Bundle<br />Add features (value)<br />Add options<br />Price Decreases<br />Unbundle<br />Remove features<br />Make components optional<br />© Pivotal Product Management LLC www.pivotalpm.com<br />7<br />Design flexibility into the product<br />
  8. 8. More Critical Pricing Questions<br />Who is involved in pricing in your organization?<br />Can every sales person explain all of the value in your offerings?<br />Have you lowered your prices because of the economy?<br />With or without changes in the product/service?<br />What happens to profits?<br />What’s your discounting policy?<br />How often do you need to discount to close deals?<br />What happens to profits? <br />Are sales staff compensated on revenue or profit?<br />© Pivotal Product Management LLC www.pivotalpm.com<br />8<br />
  9. 9. My Favorite Pricing Resource<br />Pricing with Confidence<br />10 Ways to Stop Leaving Money on the Table<br />Reed Holden and Mark Burton<br />www.holdenadvisors.com – sign up for the newsletter!<br />© Pivotal Product Management LLC www.pivotalpm.com<br />9<br />
  10. 10. Pivotal Product Management<br />We deliver product managementskills assessment, training, consulting and coaching for greater product success.<br />Linda Merrick, CPM, ACPM<br />Mara Krieps, CPM, ACPM<br />lindam@pivotalpm.com<br />10<br />
  11. 11. What are YOUR pricing challenges?<br />11<br />© Pivotal Product Management LLC www.pivotalpm.com<br />1.<br />2.<br />3.<br />4.<br />…<br />

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