While shopping, have you ever been elated because you found something you wanted at a deeply discounted price? Alternatively, have you ever been upset because the price was much higher than you expected? How about when a company raised prices (like Netflix)?
Pricing has the power to make your customers love you, hate you or anything in between. Pricing can evoke intense emotions. Pricing is so much more than a just a boring function that places a number on a product.
These intense emotions not only exist with your customers, but inside your company too. You’ve heard those emotional conversations where sales adamantly disagrees with prices set by marketing. Systems limitations around pricing cause huge frustrations. And new pricing strategies designed to grow revenue often generate excitement in a company.
The moral of this story is that pricing has the power to generate powerful emotions, to touch people’s lives. Wield your power carefully.
Mark Stiving, Ph.D. – pricing expert, speaker, author
Photo by RecycledStarDust