Pricing - John Bradley "JJ" Jackson

John Bradley "JJ" Jackson

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Pricing

A collection of 18 posts

Product Pricing Strategy

Product Pricing Strategy

Product Pricing Strategy Pricing may be the most important decision that the entrepreneur makes. Often this decision is rushed and done by the seat of the pants. Most entrepreneurs think pricing is easy. Many small businesses use mark-up pricing. Mark-up pricing uses some multiple of cost such as three or

Perceived Value Pricing

Perceived Value Pricing

“Perceived Value” pricing is pricing for a product or service at a level that reflects the potential savings, the highest satisfaction level, or the maximum use that a client will receive from the purchase and the use of the product or service. Overall, price is set at the highest level

Alcohol Consumption Drops

Alcohol Consumption Drops

It’s often said that in good times people drink a lot, and in bad times, they drink even more. Yet recent trends suggest that even this old saying may be losing its edge. For the first time in recent memory, alcohol sales have declined, not because people stopped drinking,

The Four Dimensions of Pricing

The Four Dimensions of Pricing

You must know and understand the four dimensions of pricing for a new product or start up: 1. Cost. 2. Customer. 3. Competition. 4. Yourself. Cost drives a lot of pricing decisions, but for the wrong reasons. A typical price strategy is to mark up the estimated cost by some

Pricing Products Individually

Pricing Products Individually

When establishing the prices for your products or services, don’t fall into the trap of establishing an “across board” price margin for all your products or services. Instead, look at each product individually. Look at this way. You might be able to justify a lower margin for products and

Perceived Value Pricing

Perceived Value Pricing

Perceived Value Pricing is the best choice for niche marketers (most of the time). This pricing strategy is defined as pricing a product or service at a level that reflects the potential savings, the highest satisfaction level, or the maximum use that a client will receive from the purchase and/

Price Strategically

Undoubtedly, pricing an offering is one of the more important decisions that an entrepreneur makes, yet it is my observation that it seldom gets much thought. Pricing decisions are often emotionally based and made quickly, while prices are long lived (like it or not). The market can dictate a price

A Moment of Optimism in Our Financial Crisis

While the stock market appears to be in a free fall and the business press is tossing around words like depression, doom, and chaos (irresponsibly, I may add), there is cause for optimism. The good news is that the US dollar is rising very quickly in value on the world

Pricing Below the Market

Pricing below the market is a technique used by giant mass market firms to take market share. Also known as “penetration” pricing, this is a strategy where a provider sells products below market price to break into a market or to take market share. When enough competitors are scared out

Price Skimming is Not Sustainable

Price skimming refers to the pricing of a new product or service at a very high level (while you can get away with it). This type of pricing is often deployed for a product which has a competitive advantage that is not sustainable. This happens a great deal in technology

Niche Marketers Price on Value

“Perceived value-based” pricing is pricing for a product or service at a level that reflects the potential savings, the highest satisfaction level, or the maximum use that a client will receive from the purchase and the use of the product or service. Overall, a perceived value-based price is set at

Skimming: A Pricing Strategy For New Products

Price skimming is a pricing strategy which utilizes a high price for a brief period of time; this type of pricing is generally used with the introduction of a new product. The purpose of this pricing strategy is to “skim” the profits before the competition enters the market. When TiVo

Discounts Cut Deep

To discount or not to discount---that is the question that many sales professionals must answer. At first view, it seems that discounting prices should stimulate new sales and be a good thing. But that is not always the case. The best advice may to be to hesitate and think first.

Life is a Cabernet

There is something special about a fine bottle of wine—for many, a fine wine is worth the hefty price premium. Yet, that price premium is how many wine lovers actually determine a fine wine’s merit--- the higher the price the better the wine. Scientists at California Institute of

Pricing for Entrepreneurs

Pricing may be the most important decision that the entrepreneur makes. Often this decision is rushed and done by the seat of the pants. Most entrepreneurs think pricing is easy.

Cherry Picking: An Aggressive Negotiation Tactic

Cherry Picking: An Aggressive Negotiation Tactic

You submitted your proposal to your customer two weeks ago and reluctantly presented it with line-item detail like the bid required; you also submitted a package price. Finally, you sit down with the grim-faced buyer, who pronounces the pricing too high by citing lower line-item prices from the comp

Niche Marketers Price Based on Value

Niche marketers should price their products and services based on the value received by the customer: it is the customer’s perception of value that counts. If you calculate price based on cost and/or the competition, you are not in a niche market or you are pricing incorrectly.

Value Based Pricing

“Money is better than poverty, if only for financial reasons.” Woody Allen, comedian, actor, and director (1935- ) Pricing may be the most important decision that the entrepreneur makes. Often this decision is rushed and done by the seat of the pants. Most entrepreneurs think pricing is easy. Many small businesses