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The Duct Tape Advertising Podcast with John Jantsch

On this episode of the Duct Tape Advertising Podcast, I interviewed Carolyn Crewe, an knowledgeable on pricing methods for companies. Crewe’s in depth background contains incomes an MBA, finishing pricing programs at MIT, and almost a decade of hands-on expertise within the discipline. Her journey into pricing experience started together with her personal enterprise challenges, main her to grasp that pricing is an important lever for enhancing income. On this episode, we uncover the widespread pricing errors companies make and the way to develop confidence in your pricing to cease undercutting opponents and begin profiting.

Key Takeaways

With years of expertise in pricing technique, Carolyn Crewe shares her insights into overcoming widespread pricing obstacles. She emphasizes the significance of not blindly copying opponents’ costs, as this could result in underpricing and misplaced income. Crewe factors out that many companies fall into the entice of a one-size-fits-all pricing method, which fails to seize the various willingness to pay and perceived worth amongst totally different prospects.

Crewe highlights the numerous position mindset performs in pricing selections. Many enterprise homeowners lack confidence of their pricing, fearing they are going to lose purchasers in the event that they cost extra. By understanding the true worth they supply and successfully speaking this to prospects, companies can set costs that replicate their value and entice the correct purchasers.

One of many crucial methods mentioned is transferring away from cost-plus pricing, which focuses on masking prices plus a desired revenue margin. Crewe argues that this method limits profitability and doesn’t align with buyer perceptions of worth. As an alternative, she advocates for value-based pricing, which considers the advantages and outcomes the shopper receives.

Moreover, Crewe addresses the problem of perceived danger in pricing. By providing tiered pricing packages and incorporating components like ensures, companies can present choices that cater to totally different buyer wants and budgets whereas lowering perceived danger. This method not solely enhances buyer satisfaction but additionally maximizes income potential.

By implementing these methods, companies can acquire the boldness to set costs that replicate their true worth, keep away from the pitfalls of undercutting, and obtain larger profitability.