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Pricing and Choice Architecture: Help Buyers Make Good Decisions
Manage episode 404045339 series 3555562
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Pricing is a major lever for revenue and growth, but most business development professionals are not involved in setting price. In most firms, there are a three main approaches to pricing services:
- Cost-plus
- Market-based
- Value-based
In this episode, John and Mark beat up pricing and offer a new perspective to help you guide buyers to making the right decision. You'll hear them discuss:
- Why it's important to have pricing discussions early in sales process
- How value pricing presents relieves downward price pressure
- Elements of good pricing strategy: positioning, sequencing presentations, understanding needs, negotiating win-win
- How to guide customers through options with choice architecture
- An overview of common cognitive biases impact pricing
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