• Jim Payne

What are the most common pricing myths?

  1. Customers are price sensitive. Studies have shown that that is true for less than 20% of the population. While most people will talk about the price being expensive, they are really concerned about not getting enough value for their dollars.

  2. The market sets the price. That’s true, but you are part of that market process and have a say.

  3. My product is a commodity (or has some other special reason why price is the only thing that counts). There are very few products that are truly a commodity. Even crude oil is subdivided by various properties such as sulfur content that affect their price.

  4. You must reduce prices to gain market share. Not true at all. A better approach would be to improve how you communicate the value of your product or service.

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