Pricing Policy

When companies lack firm pricing policies, they fail to maintain price integrity and consequently they lose credibility with their customers.

If you do not manage your pricing policy, you WILL lose control of it and then risk:
❌ alienating your best customers
❌ slowing down the sales process and
❌ eroding profitability

Why? Because customers form expectations about the need to pay for the value they receive.

A sound pricing policy creates an expectation that the price the customer is being asked to pay is determined objectively and has some relationship to the value they receive.

If there is no pricing policy, customers expect to be able to win discounts without giving anything in return.

✔ Price should be used proactively to influence customer expectations.

✔ It is important to manage expectations of customers and employees to encourage more profitable behaviours.

✔ You need to manage pricing proactively to influence behaviours rather than reacting to them.

✔ These expectations are set by your company’s commitment to enforce its pricing policies even in the face of aggressive competition.

Do you have a firm pricing policy?