What’s the second biggest regret of business owners in the UK?
Mark Peacock
Helping B2B Tech, IT & Digital firms increase margins & revenue growth with tailored pricing services. ** Top 100 Global Pricing Leader **
Answer: Getting their pricing strategy wrong.
A recent survey of 1,000 business owners by Hitachi Capital looked at what SMEs thought their biggest mistakes were.
Getting their pricing strategy wrong was the second biggest mistake of new start-ups, and of those who said this, more than half (57%) changed their pricing as a result in their first year of operation.
Pricing is one of the most important drivers of customer value, revenue, cash flow and profit growth, and yet all too often, most people don’t give it enough thought.
In my experience, people tend to use a combination of the following to create their pricing:
- cost plus margin pricing
- competitor based pricing
- day rates or hourly rates
- market driven pricing
- minimum margins / mark-up policies
- copying other suppliers / competitors.
What things do you take into account when setting your prices?
There are plenty of simple pricing strategies that any business can use to improve pricing in a way that will keep your customers happy and drive profitable growth.
If you’d like to know what they are, comment below and I will get in touch.
From FEAR to CONFIDENCE - Price Negotiating through the only specialist Price Negotiation Programme - Win More Deals, More Often at Higher Prices
5 年You touch on an important point, it's not just the pricing strategy that's important, it's being able to execute it. In many cases companies I've worked with get much more benefit, quicker, by being better at executing simple strategies rather than thinking about new ones, overthinking or copying others.
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5 年As ever. spot on. Cant wait to hear Mark in person and sad I missed out on the latest talk. Never mind as i am sure you will go down a treat at the YRH conference?
The Value Sales Expert - Helping Sales Directors/VP's and sales teams understand and communicate customer value and master Value Selling. Supporting thesellercode.org
5 年Some great points Mark Peacock - The Pricing Coach.? I always think of the Power of 1! - the impact a 1% improvement in price can have on bottom line profitability.? And it's not just the method of pricing that people choose that can cause problems.? One of the biggest issues is in their confidence in communicating their price and not falling back on discounting to win.?
From FEAR to CONFIDENCE - Price Negotiating through the only specialist Price Negotiation Programme - Win More Deals, More Often at Higher Prices
5 年thanks Mark, interesting that numerous surveys show how little people consider pricing, yet it is so important, they get around to it in the end by which time they could have lost ￡￡￡￡s.