There are three ways of increasing profits: sell more, cut our costs, or raise existing prices.
Raising prices, in principle, is very easy indeed - change the price ticket and price list and tell the sales force to raise prices by 5%. Of course, once we increase prices, customers may start to look elsewhere for a better deal.
It is, however, useful to broaden the discussion on price and think about value – the trade-off between the benefits a customer receives from a product or service and the price they are willing to pay for it.
B2B International's pricing research solutions are grounded in the principles of value marketing. Our thoughts on this important topic are contained below: