One-size fits all approach to pricing destroys value

All customer needs are not equal and different customers will have different needs from your products and services. Geographically, prices will vary too depending on market dynamics and competitor landscape.

By charging the same price to all customers, businesses are:

❌ Destroying value by treating all customers’ needs as equal, which they are not

❌ Over-charging some customers and missing out on opportunities

❌ Under-charging other customers and leaving money on table resulting in unharvested value

❌ Reducing profitability and

❌ Intensifying pricing pressure

Some customers are looking for a no frills, low cost offering whilst others want to work collaboratively with you, and they are willing to pay a higher price for the additional value that they receive from you.

The value proposition of your product or service differs across your customer base and segmenting your customers based on their needs increases profitability and reduces competitive intensity.

A one-size fits all approach to pricing destroys value – are you charging all your customers the same price?