The question of pricing is once central to the discussion of forecasting and planning for profitability. Old wisdom says lowering prices will increase our customer base and more than offset the lower margins on our new prices, giving us a new competitive advantage over our competition…
But is this assumption correct in fast-moving, turbulent times?
In today’s video (see the end of this blog entry), I will answer that question by giving you the exact tools you need to assess how changing prices will impact your business’s true profitability.
As you watch the video, you will discover
- The 4 strategies every CEO must understand clearly and focus on in order to succeed in today’s fast-moving and complex world.
- How lack of clarity and focus can create a downward spiral in your business and erode your confidence as a decision maker
- The steps to identify whether your company lacks sufficient strategic focus.
- Why updating your “mental models” is the key to your future success.
- Whether you should raise or lower your prices to improve your business profitability
Whether you should raise or lower your prices is directly attributed to your company’s strategic competitive position in your market.
In this video, I introduce three critical What-if Predictive Scenario Calculators to give you the strategic focus you need to determine the answer to this crucial question of whether to raise or lower prices.
First I introduce the “Should Prices be Raised or Lowered Calculator” which clearly calculates the number of new customers necessary to offset a price decrease and the number of customers who can be sacrificed in a price increase to keep gross margin dollars consistent.
Second, I introduce the “Customer Contribution Calculator” which provides you clarity on which customers you should be focusing on growing, and which are sucking your profits.
Third, I introduce a calculator to actually calculate your value proposition in your market, and assess your real strategic competitive position.
To ensure you have the clarity, focus, and execution to make the right strategic decisions for you and your customers during these fast-moving times, I invite you to watch this video.
You will learn more about which decisions to make based on your assessments when you join my e-learning by doing programs. You can schedule an appointment for a consultation and discussion of which program is right for your business when you contact us using the form below.