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10 Tips for a Successful Pricing Strategy

10 STEPS TO PROFITABLE PRICING insights brought to you by ΚΙΝΙΜΕTRIX BỊ MAKES DATA VISUAL, KINIMETRIX MAKES DATA PROFITABLE, START EARLY 1 Plan price changes at least six months in advance. This allows you to build a solid strategy and prepare all team members, specifically the sales team. FOCUS ON VALUE When communicating pricing with prospective or existing customers, always tie prices back to value, such as on-time delivery and excellent customer service. DO YOUR RESEARCH We don't recommend copying your competitors' pricing strategies, but understanding them is key to highlighting the right product features and benefits. BE REALISTIC 4 It only takes a 1% price increase to boost profits by 11%. Don't get overambitious and lose your sales team's support and customers' business. SURGICALLY SEGMENT Customize prices customer-by-customer and product-by-product to deliver the right value propositions on every deal every time. CONTROL THE CONVERSATION 6. Buyers will say whatever it takes to convince your team to drop prices. Use your data to prove your prices are fair, competitive, and reflective of value delivered. PATCH YOUR LEAKS 7 Profitable pricing is easily reduced to nothing through overzealous discounts, allowances, and rebates. Minimize those margin leaks to solidify your strategy. TRIM THE FAT 8. 20% of your customers are to0 expensive to keep. Identify and eliminate them to not only strengthen your pricing strategy but also boost your margins overall. INCENTIVIZE EFFECTIVELY 9. There's no better way to motivate your sales team to push a new pricing strategy than tying rewards to their success in doing so. ANALYZE OBSESSIVELY 10 Measure your pricing strategies often to stay on top of what works and what doesn't. Evaluating sales and price trends regularly will help you fine-tune pricing by segments. Learn more at thekinigroup.com.

10 Tips for a Successful Pricing Strategy

shared by aarthur on Mar 18
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Pricing continues to be one of the most easily-managed lever to increase profits. Stick to these 10 steps to achieve sustainable growth.

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