More than pricing
Strategic pricing is not about tricking customers as many mistakenly believe. Strategic pricing is about creating a price / financing model that fits your prioritized- and your most potential target groups in detail. The goal is, of course, to create higher interest, more business and loyal relationships with your customers.
Wrong pricing is a detail that potentially ruins the entire business
An incorrectly communicated price means the majority of customer, as much as up to 100 % will choose another supplier. Those who still completed the deal are more likely to be dissatisfied based on the experience of an incorrect price in relation to the product.
With correct pricing you are likely to generate up to 80-100 % transactions based on customers that showed an interest of your products/solutions.
Follow us here in a couple of weeks
I will in a few weeks review the basics of strategic pricing so that you can create a competitive price based on your product / solution and your market.
I’m going through a structure that makes it easier for you to understand how to handle, including pricing of the Base Product, Supplementary Product, Add-on product, and the Value Enhancing Product. We use a model, (Customer Valued Pricing), which basically contains several items with the following goals:
1) Create a price that is logical
2) Create price that enhances the value
3) Create a price that generates higher loyalty
4) Create a long-term price
5) Create a price that in itself has a competitive advantage, without being lower
6) A price that (increases) the direct interest
7) funding Models
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It’s often I can hear excuses for a low Hit Rate %, such as e.g. that the product is wrong, the market is too tough, it’s to few sales reps, more marketing is needed etc.
A low Hit Rate is mostly based on your own performance
A Hit Rate should be high, over 50 % even if your product / solution not is the market-leading one. Hit Rate % is largely based on your ability to plan and work strategically towards the right market at the right time.
Here are five actions that significantly improve your Hit Rate:
- Target Groups – Define your Target Groups in detail, even if your company already has one.
- Value Propositions – Define net based value propositions for each Target Groups
- Business Model – Create a specific business model for each target Target Group
- Optimize communication – Plan the best way to communicate, event, meetings, lectures etc, and when
- Optimize Meetings – Plan your meetings in detail, when, how, with who, and don’t do anything with out a thought. Work tactically and let the customer close.
Take those specified actions and you will guaranteed improve your Hit Rate above 50 %.
Strategic Packaging is the way you choose to communicate your Product, (hardware, software, services, and / or solutions), toward a defined target market with the goal of maximizing and achieving optimal results while maintaining or improving confirmed customer-experienced quality
When talking about Packaging we usually think of physical packaging, even if packaging cover other areas as well. Strategic Product Packaging is the extension of all packaging, and is crucial in today’s fast moving markets. Strategic Product Packaging is How, When and to Whom you communicate your product In order to maximize your market position.
It’s a long time ago it only concerned Sales, and Marketing. In order to optimize your strategy it has to include the entire organization. We take it even further and include the customer and it’s experience. Being business minded is to include Strategic Product Packaging as part of the on-going executive strategic process.
Part 1 – What is Strategic Packaging
Part 2 – Goals, Segmentation and Defining the Product (December 20th)
Part 3 – Business Models and Mapping (End of December)
Part 4 – Strategic Pricing (Method and Template)
Part 5 – Communication Templates & Activity Planning
“Nespresso created a new product, where the customer can simply could prepare coffee with coffee capsules in a simple and trendy way. An example where Physical- and Strategic Product Packaging created a market leader based on an old product – coffee”