Smarter Pricing: How to capture more value in your market

Avoid, avoid, avoid

To capture value and deliver optimal profits, the answer is to avoid price wars if at all possible. How do you stop price wars before they start? There are some clear strategies.

First, focus public communications on value delivery and benefits rather than price. Take the debate away from the orange starburst. Build the reputation of the industry among all consumers to encourage competitors to join you on the high ground. The UK grocer, Waitrose, has consistently used high-standard photography to imbue its products with a sense of quality. Its prices are generally competitive, but all communication is focused on benefits.

Second, companies, particularly leaders in the market, are advised to make their strategic intentions ...