As I’ve been running my ongoing pricing survey, I got to think about ways that I can teach y’all about pricing that will help the concepts stick.
This thinking led me to come up with the 3 Ps of Pricing:
Let me explain:
The Process: This is how you come to the price you are going to set. Market research. Customer feedback. Defining the true economic value. All of these ingredients and more go into your process.
The Price: This is the number you set to represent the value of the product or service that you are providing.
The Promotion: Just like the 4Ps of marketing, promotion is how you sell the price. You don’t just set it and forget it. You have to sell the price as a fair representation of the value of the product or service you are providing.
You can do one and may even get lucky. But to get the maximum value out of your pricing moment, you need to do all three.