Gain a Competitive Edge Through Product and Price Positioning.
Product and price positioning is typically a company’s most powerful profit lever, yet it is one of the most commonly mismanaged — or even neglected— strategic business activities.
Why are companies leaving money on the table? Some organizations view pricing as a “sacred cow” that should remain untouched. Others may think they already understand what customers want, and set prices using straightforward cost-plus or competition-based models. And while many organizations do recognize the importance of value-based price and positioning, most simply don’t have the internal resources and expertise to accurately identify, quantify and leverage
exactly what customers and prospects want.
Missed pricing and positioning opportunities are difficult to detect because there are so many variables at play. Suppliers must perpetually weigh their profit goals against customers’ desires and competitors’ products:
- All of the most desirable product features
- The lowest possible cost
Suppliers want to maximize revenues and profits by:
- Minimizing the cost of providing features
- Providing products and services that offer greater value than the competition
How does a business balance these very different perspectives and goals? While diving into these issues may seem daunting, it’s well worth the effort, especially for companies in highly competitive industries.
Below is Principia’s approach to evaluating your product’s current value proposition and pricing, what you can get and how you can use the information to ensure you are not leaving money on the table.
To learn more on how to gain a competitive edge through product and price positioning, download Principia’s Product and Price Positioning Article. Click Here to Download.