16 ways to handle pricing objections

Posted by Moira McCormick on October 30, 2015

Introduction

Yes, it's that old chestnut again - price. Everything was going so well in the negotiations and then the issue of price came between you! It's the one objection that can paralyse the sales process. You want this sale badly so you do what comes naturally - you offer a discount on the price. Think again my friend!

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8 Must Read Books for Pricing Professionals

Posted by Moira McCormick on October 28, 2015

There are plenty of books out there on the subject of pricing - it's true, some more readable than others! Try these 8 recommended books for size:

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Topics: Pricing Books

10 fears that stop you from optimising your prices

Posted by Moira McCormick on October 21, 2015

What is Price Optimisation?

Price Optimisation [Optimization] is the use of mathematical analysis by companies to determine how customers will respond to different prices for their products and services. It is also used to determine the prices that companies believe will best meet their main objectives such as maximizing profit.

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4 Ways Companies Overlook Pricing

Posted by Moira McCormick on October 19, 2015

We have shown previously that blind spots in your sales process can be costing you thousands, if not millions. But what happens when a company overlooks pricing?

When in business it’s imperative to maximize profits to stay ahead and afloat. Product, place and promotion afects costs but price is the only element that affects revenues and thus a business's profits. A smart pricing policy will have a massive impact on your bottom line - a one percent increase in price (for most companies) for instance often results in a 10% or greater increase in profits.

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When should you increase your prices?

Posted by Moira McCormick on October 14, 2015

 

Well, don't follow the example of the head of a US pharmaceutical company who got the whole price increase issue so very wrong recently. His company, Turing Pharmaceuticals acquired the rights to Daraprim in August; they then proceeded to raise the price of this 62-year-old medication used by Aids patients and those with a compromised immune system by a staggering 5,000%. A dose of the drug increased overnight from $13.50 to $750.

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What is Price Elasticity?

Posted by Moira McCormick on October 12, 2015

Price Elasticity is a measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Price Elasticity of Demand (PED) is a term used in economics when discussing price sensitivity. The formula for calculating price elasticity of demand is:

Price Elasticity of Demand = % change in Quantity Demanded / % Change in Price

If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or responsive to price changes). On the other hand, a product is deemed inelastic if a large change in price is accompanied by a small amount of change in quantity demanded.

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Topics: Price Elasticity

How can we better tackle gender imbalance in software development?

Posted by Moira McCormick on October 7, 2015

It is clear that software is here to stay, yet according to the latest analysis from Women in Science and Engineering (Wise) of UK labour market statistics, women make up just 12.8% of the STEM (Science, Technology, Engineering and Mathematics) workforce. The proportion had increased by only 0.2 percentage points since their analysis in 2012. Half of all gamers are women - but only four percent code them. Only seven of the richest 100 tech billionaires are female.

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5 Sales Process Blind Spots that are Costing you Thousands if not Millions

Posted by Moira McCormick on October 5, 2015
Gallup recently published a report to highlight the relationships between buyers and sellers to help better understand the nature of that relationship. Its main focus was on business to business (B2B) sales, but it also included some helpful hints that can be applied to any sales situation to avoid blind spots and increase sales.
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9 Factors that Affect a Customer's Willingness to Pay

Posted by Moira McCormick on October 2, 2015
Willingness to pay (WTP) is the maximum amount an individual is willing to hand over to procure a product or service. The price of the transaction will thus be at a point somewhere between a buyer's willingness to pay and a seller's willingness to accept.
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Topics: Willingness to Pay

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