08 Aug The Challenge of Pricing
Pricing decisions are among the most challenging and important decisions a company / manager / entrepreneur makes. They have obvious financial implications (think margin, price-volume trade-offs, CLV) but also more indirect implications when it comes to positioning in the mind of the consumer, loyalty, trials, and customer satisfaction. But, why stop there? In the case of tangible products, pricing decisions have deep implications to manufacturing and inventory management. Further complicating matters is that price is not a fixed or one-dimensional decision. We have to consider (in many cases) the price consumers’ pay, the price a channel pays, seasonal pricing, price promotions, etc. Finally, we have to consider how our direct competitors price. Arguably it is the most dynamic decision for businesses.
Here’s a link to a framing of some of these issues from McKinsey & Company.
MBTN Academy can help you understand many of the underlying concepts to consider in pricing decisions. MBTN modules that will help you make better pricing decisions are listed below:
Margins 1 & 2
Profit Dynamics (Price Volume Trade-offs)
Marketing Experiments 1 & 2 (Includes A/B Testing)
Each of these modules offers a different perspective on the dynamic decision of pricing. A complete list of our modules is available here. If you’d like to deeply explore the issues of pricing, sign up now for our complete set of marketing modules. It also includes all our micro-certifications (such as the pricing certification)!