great pricing article

[joe]

Here is a great article on pricing http://www.inc.com/magazine/20050601/pricing.html

[B. Newman]

EXCELLENT!

Betty

[Smile with Style]

WOW! and I haven't even read the whole article yet. Thanks, Joe! graemlins/thumbsup.gif

[John Ranes II, CPF, GCF]

...When determining your prices, says John Gourville, a marketing professor at Harvard University who studies pricing, the first question to ask is this: How much would a rational consumer be willing to pay for your product, assuming the consumer had a perfect understanding of its actual worth? It sounds easy. But while most business owners spend a good chunk of their time touting the benefits of their products and services, "they haven't tried to monetize those benefits," says Brent Lippman. The first step toward creating a pricing strategy, then, is to do just that -- think through the benefits of your product and make a rough calculation of what you think they're worth in dollar terms...This sounds a bit like our good friend, Bob Carter speaking.

Most importantly this theory holds water regardless if you're selling OEM metal framed posters at $79.95 or $700 custom framing jobs with hand wrapped linen mats.

Good article, joe


John

[Dave]

Joe,

Excellent article...a must read.

More people go out of business for underpricing than for overpricing. Quality custom framing is a prime example of invisible pricing principals.

A good book that all small business owners should read (and read over and over again) is "Up Against the Wal-Marts". It discusses the principal of invisible pricing and how to differentiate yourself from the competition among many other topics.

Dave Makielski

[danny boy]

Good article. It makes you think..