What Price Optimisation is Not …

Pricing is NOT about tricking your customers or using mind magic to fool people.
Pricing IS a healthy balance between the value you provide and the price you charge for it. 

It is about understanding value, as it is perceived by your customers, delivering that value, and charging for it.

Would you consider getting a makeup before taking your portrait as a deception tactic, or as a way to make sure you present yourself in the best way you can?

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How Pricing Can Be Overlooked

In most industries pricing is widely overlooked and in some, it is greatly misunderstood to be simple and void of art.

Pricing can sit in different functional areas of a business, each with its own advantages and challenges to handle this hot potato.

Generally regards pricing as: something to balance and control.
Advantage: access to technical analysis skills and tools.
Challenges: commercial thinking. Preference for structure over creativity.
May miss some insight into how Value is created and perceived.

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How to start thinking about your pricing

The first step towards finding the right pricing solution is if you can say the following,

Not all customer-groups value my products the same way“.

If this is true for your business, whether you provide a product or a service, then you are in the right place to start your pricing journey.

Once you realise there is variance in value perception, you can start asking yourself some interesting questions;

  1. Am I losing some customers that don’t buy now, buy will buy if prices were cheaper?
    • Will some of my customers buy more if I reduce the price?
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