“There are two fools for every market: one asks for too little, the other asks for too much.” (Russian proverb)
How do you know when the price is right? Before answering this tricky question, we first have to appreciate how important it actually is: when properly understood, the financial benefit of choosing the correct price dwarfs any other driver of performance. Next, we have to agree on the information that organisations need to make better decisions. There are four ingredients that matter: company, cost, competitor and customer. Most professionals recall the “4Cs” in a matter of seconds. However, they struggle with defining and combining this information properly. The session tackles this problem with the aid of a simple “two finger” framework. One lesson is that finding the perfect price implies striking a balance between looking inside and outside of the business for inspiration. The foundation is a solid understanding of how one’s offering differs meaningfully from those of competitors. More important, finding the perfect price is ultimately about one thing: gaining control over the top line.