It’s Price Before Product. Period.
Video

It’s Price Before Product. Period.


Editorial Rating

7

Qualities

  • Applicable
  • Concrete Examples
  • Insider's Take

Recommendation

You can’t compete on price through innovation without first figuring out the value you offer and determining a price point. And you can’t do that without asking your customers how much they are willing to pay. Pricing consultant Madhavan Ramanujam illustrates valuable approaches to determining your product’s fair market value. Although his talk is quite circumlocutory, viewers will garner valuable tips on how to price their products optimally.

Summary

A 2014 survey of more than 1,600 companies found that 80% felt under price pressure. Most planned to innovate their way out of trouble, although 72% of their previous innovations had fizzled. When monetizing innovation, failure can occur in four ways: Some falter because they are packed with too many unwanted features. Others fall short because companies lack the gumption to charge the right price. Some failures are potentially lucrative opportunities that companies allow to pass them by. For example, Kodak could have developed digital photography in 1970 but feared it would eat into its primary business. Finally, innovations can bomb if consumers...

About the Speaker

Pricing consultant Madhavan Ramanujam is a board member and partner at Simon-Kucher & Partners.


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