Insights on pricing
Our team writes about the price a company keeps, which is rarely the one on the invoice.
There are two prices in every deal you close. (read where we wrote it)
4Pieces from our team on pricing
Read our team on discounts, margin and the price you keep
What does our team see when it looks at a company's prices?
- A small group produces most of the profit. A long tail produces very little. And a meaningful group actively loses money.
From "Cost to Serve: Why Two Identical Customers Earn You Different Money"
- Sriram ChidambaramAt 20% contribution margin, a 10% discount requires you to double your business to be no better and no worse off than before you gave it.
From "The discount breakeven table every salesperson should carry"
- Sriram ChidambaramEvery ninety-day payment term accepted without pricing it is a permanent three-and-a-half percent discount that will never show up in any report you read.
From "Every large corporate has a VP of Pricing. Your startup has nobody."
- Sriram ChidambaramIf your deals span 49 to 95 on the same product, roughly half your pricing is being decided by something other than policy, usually which salesperson handled it and how hard the buyer pushed.
From "The pocket price waterfall: finding the 20% you never knew you gave away"
- How do we know our pricing is wrong?
- Should we price against competitors?
- Will raising prices lose customers?