Place more emphasis on the quality of your offer and its communication now!

Everywhere I hear and read that people are now much more concerned with pricing because of inflation, because of supply chain problems and for quality reasons. And also because of the uncertainties of the future energy supply.

Now, that there is a great uncertainty, there is suddenly much more time to dedicate to pricing. But price management should always be a very high priority because it is by far the biggest driver of profit!

If you haven`t already done so, make pricing the chief task and install a pricing manager, detached from the CFO.

Train all staff in pricing – issues down to the new trainee. Pricing must be anchored in the mindset of everybody in the company to be aware of the consequences.

This also requires a clear value strategy. There is a much higher need for good quality, quality checks and sustainabilty concepts.

In Latin the word „ pretium “ means value and price in one word. That makes it more clear that the price needs a certain value to be justified.

Even back then, people knew that any price could only be realised with a corresponding value of the product or service.

If the price seems too high, either the value is too low or the value is not perceived properly.

The price is therefore the communicated and perceived value.

How to implement value concepts the best way?

We have to communicate the additional values like qualities of the material, the special design, the innovation, the special packaging, the sustainability, the longevity, the additional service, the economic viability, the special product benefits of usage, the digital support and so forth…

Conclusion:
There are no prices that are too high, only offers with too little value and performance or sellers who do not communicate the values efficiently.

Work on both possibilities!

Please contact me for further information and support: fritz@fritzgerke.com

My book recommendations from Herman Simon: