Unlocking Business profitability

Last night I spoke to an audience of approx. 50 entrepreneurs at the Celtic Club in Melbourne. A very attentive and interested audience hopefully picked up some useful pricing tips that they will be able to put into practice when they return to work this morning.

My Top 10 pricing tips, which I know people were scrambling to write down last night (done without a Powerpoint presentation - how refreshing) were as follows:


1. Always move price and value together
2. Pricing is harder up than it is down
3. Never under-price a revolutionary product
4. Add products at the top and not the bottom of the product line
5. Understand the difference between setting prices and getting prices
6. Costs are an internal matter and prices are an external matter, based on the value to the customer
7. Pricing is transferable
8. There is no such thing as a pricing laboratory
9. Only respond to a competitive price moves if your product and theirs are apples and apples
10. Remember the "Concept of Dual Entitlement" - a customer is entitled to a fair price and the company is entitled to a fair profit.