“When you really care about a relationship, bad news is best delivered in person,” said my boss. As our team’s product manager at the time, that person was me. I traveled to a small city in southern Japan to tell our manufacturing partner to expect a drastic reduction in orders.
Bob Sherlock was recently interviewed by Brick Meets Click, prompting an interesting discussion of how to apply the Daring Caution approach to pricing consumer products.
Radically new innovations are especially well-suited for emphasizing value to the customer when setting the price. Because there is no reference product or service tightly constraining the prospect’s expectation for the selling price, you have more freedom from the “gravitational pull” of past and present prices. You can look at how your solution can create value in the prospect’s b
In company environments where pricing power is a function of customer preference, one can use survey data to discover Brand Preference and use that as a proxy measure. A five-point scale would do the job:
5 = Insistently Loyal to Brand
4 = Prefer the Brand
3 = Neutral / Open
“Stop Me”
The chairman of a well-known consumer brand told us of the buying executive for a retail chain who growled, “My job is to make your product a commodity. Your job is to stop me.”