How To Price Your Products

Inc realise pricing a product is probably the toughest thing there is to do. One of the secrets to business success is pricing your products appropriately. Price your products correctly and that can enhance how much you sell, creating the foundation for a business that will prosper. Get your pricing strategy wrong and you may create problems that your business may never be able to overcome. When pricing your products consider the following factors:

  • Know your customer
  • Know your costs
  • Know your revenue target
  • Know your competitors
  • Know where the market is headed 

Read more at http://www.inc.com/guides/price-your-products.html

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How To Find Growth Opportunities Within Your Company

Chief Executive answers how will businesses create value for shareholders three or five years from now. Most companies expect to continue growing faster than the overall economy.
Successful companies approach growth in the following four ways, prioritized according to their benefit-to-risk ratio:

  • Growing the core
  • Expanding into adjacent markets
  • Expanding geographically 
  • Building new capabilities to enter a market in disruption 

Read more at http://chiefexecutive.net/find-growth-opportunities-within-company/2

At Stratinis we add value to your business through our pricing software. Learn more on our website.

Big Data At Your Utility

Intelligent Utility recognise the Internet of things, empowered consumers, stringent regulations and digitization have changed the approach towards data in utility industry. Utilities need to see big data not in isolation, but as an importance force in their digital re-imagination – to take a more holistic collaborative approach.

The current challenges include:

  • Fearful of starting with limited knowledge 
  • Do not have the correct organizational structure for a big data culture that enables trust between business, data scientist and IT
  • Do not have people with the right skills to tackle big data

The question remains how to tackle such issues? TCS has a specific big data concept that they invest in called a 4D approach:

  • 1D: Define the right use cases and pinpoint the biggest opportunities to create value from your data.
  • 2D: Determine the right algorithms, goals and constraints to deliver on those opportunities
  • 3D: Deploy the right IT systems to model conditions and integrate data
  • 4D: Delineate the right data domain and relevant sources.

Read more at http://www.intelligentutility.com/article/14/08/where-start-big-data-your-utility

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Is It Time to Reconsider Your Pricing Strategy?

MIT Sloan Management Review highlight price setting and pricing getting require discipline – not luck. Almost any business can improve its pricing performance, provided it approaches pricing in a structured way.

How could companies go about reconsidering their pricing strategy? – The first area that may require a fundamental rethink is the way companies set prices. Many companies have a significant opportunity to differentiate themselves from competitors by learning how to create, quantify, communicate and capture customer value by implementing customer value-based pricing strategies.

A second area concerns price realization – that is, the process of translating list prices into profitable pocket prices. Here, many companies lack the information systems, negotiation capabilities, incentive schemes, controlling tools and sales personnel confidence leading to superior price realization. Small improvements in any of these areas lead to quantifiable results very quickly.

Read more at http://sloanreview.mit.edu/article/is-it-time-to-rethink-your-pricing-strategy/

At Stratinis we add value to your business through our pricing software. Learn more on our website.

Why Spend Time On Pricing?

MyDigitalFC notice pricing problems can be caused by any aspect of the marketing mix – so why spend time on pricing? It is fundamental, as problems with other aspects of marketing are rarely apparent, until you understand how they affect the consumers’ willingness to pay the price. By studying what is behind the customers’ reaction to price, you can understand what needs to be fixed.

The right price will get you up there on profitability, if not market share. What many among us do not realise is that good marketing begins by determining what marketing efforts are necessary to support good pricing.

Read more at http://www.mydigitalfc.com/knowledge/right-price-creates-value-buyers-and-yet-profitable-sellers-486

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Why Pricing Software Is A Must

Econsultancy notice how dynamic pricing is a pricing strategy, in which prices change in response to real-time supply and demand. Dynamic pricing allows retailers to remain competitive with 24/7 price monitoring and changes, boosting profits by 25% on average.

Pricing intelligence software has already caught on, as 22% of retailers have chosen to implement it. An additional 7% plan to start using it within the next six months and 36% in the next year. Amazon, one of  the largest retailers that uses dynamic pricing, changes its prices every 10 minutes on average. The company saw a 27.2% increase in sales from 2012 to 2013 and generated over $44 billion in sales, just last year.

The question remains – how does one start to weave dynamic pricing into existing pricing strategies? Here are the top dynamic pricing tactics:

  • Segmented pricing 
  • Peak pricing
  • Time-based pricing 
  • Penetration pricing 

Read more at https://econsultancy.com/blog/65327-why-dynamic-pricing-is-a-must-for-ecommerce-retailers#i.jf91ckaorf8ivv

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Selling Price Structure and Revenue System Changes to Your Sales Team

Companies selling in B2B are always looking for ways to improve their pricing. This often involves changing the price structure. Here are 10 good ideas to help selling such changes to your sales team:
  1.  Change Management is not an empty consultancy concept. It is working with stakeholders to get price changes well understood and ideally accepted in the organization. Involve those stakeholders in the reasons and logic of the price structure change.
  2. Collaborate, collaborate, collaborate: No successful price change has ever come 100% from the pricing team.
  3. Communicate, communicate, communicate: make sure to communicate to the sales team the reasons and the benefits of the price change.
  4. Complex price structures can be good, as they may allow for easier future price increases or less international price comparison. However accept the responsibility, as a pricing team, that this should be explainable to the sales team. Allow sufficient time to train properly in the pricing logic.
  5. Practice value arguments: Very often sales people react negatively to pricing “systems” where they feel the result (the final price paid) is unsellable to the customers. A thorough value argumentation training will make them feel equipped to tackle the changes.
  6. Consider running a pilot in a channel or segment that can be isolated from the rest. A successful pilot will go a long way towards convincing sales people that the customers will not just reject the changes.
  7. Assess any impacts on sales bonuses ahead of communicating changes. If sales people fear for their bonuses because of the change, your chances of success are very slim. Work with sales leadership and possibly HR to ensure buy-in from the sales team.
  8. International: Do not force the same logic on all countries. It is highly unlikely they do business the same way. Allow for different price structures in individual countries or regions.
  9.  International: Identify (or create) Key Performance Indicators that you want to follow globally, and then make sure these KPIs can be tracked, despite price structures can be different.
  10. Simulate price structures before, on and after for all significant key accounts / channels / segments. Not only will it show you where your new pricing logic may have flaws, but it will also be a helpful tool for the sales people to share with their customers.

At Stratinis we add value to your business through our pricing software. Learn more on our website.

What Is The Most Important Element In Your Business?

Marketing Donut highlight getting your pricing right will make an enormous difference to your turnover and your profits. It is seen as one of the most crucial elements in ensuring a more efficient business. It is a difficult art – set it too high and your customers will flock to cheaper competitors; set it too low and people will assume your product or service is low quality and steer clear. It is essential to take into account how you will structure the following:

  • Competitive pricing
  • Premium pricing 
  • Discount pricing strategies 
  • Pricing a range of products 

Read more at http://www.marketingdonut.co.uk/marketing/marketing-strategy/pricing

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How To Create A Successful Pricing Strategy

Associations Now recognise pricing is a powerful tool for any organisation, and the key to better pricing is to offer your customers choices. By offering customers choices, it is easier to increase prices and in turn persuade consumers to opt for highest price option. The question remains – how do you set such a price? Founder of business consulting firm Culture of Profit, Rafi Mohammed sees the following steps, as a game changer within how to create a successful pricing strategy:

  • Determine the next best alternative
  • Take the time to explain the value you just defined
  • Define the right price that reflects your products value
  • Create a value statement that defines how does your association compare to the next-best alternative

Read more at http://associationsnow.com/2014/08/game-changer-tips-creating-pricing-strategy/

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Why Big Data?

As shown in the 2014 IDG Enterprise Big Data research was completed with the goal of gaining a better understanding of organisations’ big data initiatives, investments and strategies. Key findings include:

  • Organisations are seeing exponential growth in the amount of data managed with an expected increase of 76% within the next 12-18 months 
  • Organisations are investing in developing or buying software applications, additional server hardware and hiring staff with analytical skills in preparation for big data initiatives
  • CEOs are focused on the value of big data and are partnering with IT executives who will purchase/manage/execute on the strategies 

Read more at http://www.idgenterprise.com/report/big-data-2

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