Smarter Pricing: How to capture more value in your market

13. Smarter pricing – the five-minute version

Some of your prices are too low. Some customers would pay more, and at some times and places you could charge more. But none of your customers will tell you this. Though they are all too ready and eager to tell you when your prices are too high. And your competitors will harangue your customers with promises of lower prices, and besiege you with price wars. How can you build profits under these conditions? The answer is smarter pricing.

Finding the smarter price has greater impact on market success than any other element. One percent on price has more effect than a one percent cost reduction or a one percent volume increase. Yet experts confirm that pricing is often guesswork – a mixture of voodoo ...