Pricing Strategy

15 posts

There are two fundamental assumptions you must make in order to compete effectively against low price competitors: Some people buy solely on price…but it is the smallest part of your market Most people buy on value Let’s talk a minute about the value buyers. People want value for their dollar. […]

Equalize Price Points to Crystallize Personal Relevance. This is the first recession to show a measurable impact on DeathCare.  Most surprising have been the many reports from rural and “rustbelt” funeral directors that cremation has recently spiked, not because people in their markets want cremation but BECAUSE THEY CAN’T AFFORD […]

I feel like maybe I have backed myself into a corner. Price-Led-Costing A simple concept; but for an industry steeped in generations of pricing from exactly the opposite perspective and whose most respected financial advisors continue to advocate cost-led-pricing this is bound to be a real challenge.  To enable you, […]

Building A Competitive Fortress Through Your Pricing Strategy

Last week I addressed our broken pricing model referred to as Cost-Led-Pricing.  Apropos of everything this article came to my attention Tough times add hardship to heartache: More families ask for help paying for funerals underscoring the problem created by our outdated pricing strategy and causing me to wonder if maybe […]

This image illustrates so well the folly of our more than century old pricing model.   All was good until the market changed about 30 years  ago.  Because we didn’t know anything else (and neither did our advisors)  our response to the growth in cremation has been to beef up […]

Greatest Hits: How To Get Customers to Stop Fixating On Price

Well, it’s summer time and I am on vacation.  So, I thought I would resurrect some of my most popular articles The first is a series I wrote last summer entitled:  “How To Get Customers To Stop Fixating On Price” Part 1: “Equalize Price Points to Crystallize Personal Relevance”  Part […]

How 1% = 20% Profit Increase

I recently read about a research project conducted by McKinsey & Company, a world renowned consulting company.  They found that among a select group of 1200 global companies, a 1% increase in average prices would translate into an 11% increase in profits.    Assuming demand remains constant, an additional study […]

A Different Way To Think About Packaging

for the past 4 weeks I have been attempting to spark a conversation about Pricing Strategy against the backdrop of a recent Harvard Business Review article: “How to Stop Customers From Fixating on Price.” Candace Franco responded with great insight:  “Very thought provoking … but here is one I’d like […]

How To Stop Customers From Fixating on Price    Part 4

Partition Prices to Highlight Overlooked Benefits  This is the 4th and last in a series on pricing strategy based on an article from Harvard Business Review of the same title.  The purpose of this series is to stimulate thought and conversation among practitioners about pricing as a strategy rather than […]