The Business Leadership team of a manufacturing company told us that customers saw them as innovative, technological leaders in their industry, first to market with new products, superior quality and supplier of first choice. Their website and brochures highlighted all these above points.

Many manufacturing businesses constantly find themselves talking about their pricing rather than the value their solution is adding to their customers.

Manufacturing companies are currently facing several challenges, including raw material price increases, volatile customer demand, limited supply or even shortages, supply chain instability, increasing cost-to-serve, just to name a few.

My manufacturing client was developing a chemical pump based on feedback from Sales that their customers needed this. Engineering set about designing a great product.

Let’s start with what strategic pricing it is NOT – it is not simply about raising prices or just setting the right price!

What strategic pricing is about is building a foundation for long-term profitable growth.

Having spent time, money and resource developing a product, businesses naturally want to shout out about and promote their product features. 

But what do your customers really care about?

Manufacturing has faced significant challenges in the last 12 months from the global pandemic to Brexit.

How do you know whether you should price your new product at £1,500 or £3,000?

For many businesses, price is just a number given to a product or service based either on cost-plus, market price or even a gut feel.  Price, tragically is an afterthought.

70% of new product launches fail! If you are developing a new product, how are you ensuring that it will be successful and profitable?

When developing a new product, do you evaluate the competitive alternatives? Your customer has choices and can buy from your direct or indirect competitors.

Setting the right price can MAKE or BREAK your business.

“The reason it seems that price is all your customers care about is that you haven’t given them anything else to care about.” – Seth Godin

With statistics showing that almost 70% of new products fail, it is critical that you give your product every chance to succeed.

Very often businesses offer price discounts to their customers to achieve their sales target or due to competitive pressure.

Very few businesses UNDERSTAND how much value their products create for customers.

Many businesses are facing an extremely tough time at the moment.

A pricing strategy builds the foundation for long-term profitable growth.

Companies that implement value pricing, benefit from fully incorporating:

Are you considering increasing your prices?