“There are two fools for every market: one asks for too little, the other for too much.” (Russian proverb)
There are only four ingredients that matter when setting a price: company, cost, competitor, and customer. When prompted, most business professionals cite these four “Cs” in a matter of seconds. However, they then struggle to define each input or combine them into a proper decision. The session proposes a simple “two-finger” framework to address this problem. We draw several lessons, but two stand out. First, finding the right price implies striking a balance between looking inside and outside of the organization for inspiration. Second, the key criterion is a solid understanding of how one’s offering differs from those of competitors in the eyes of the target customer. Indeed, a business that cannot translate value added into dollars and cents is a business without confidence or control.