Welcome to the latest edition of our new weekly blog series, The Underrated Series. Each week, we will highlight an important, often underrated component of marketing success.
Last week’s underrated topic was customer service.
What are we underrating this week? Pricing.
Pricing might be the most underrated, underutilized tool at a marketer’s disposal. The reason why, most often, is that we don’t understand pricing for all that it is.
We think of pricing in a very simple, straightforward way. The price is the price. We set it, based on some estimation of the consumers’ ability to pay, or by looking at what our competitors are doing, and we forget it.
But pricing is so much more complex than that. And in this case, complex doesn’t have to mean difficult. Don’t let it scare you. Complex means nuanced. There are different aspects and levels of pricing that you must discover and incorporate into your strategy.
You can test different price points to find a sweet spot for sales. You can offer payment plans that make your products or services more affordable and keep a constant revenue stream coming in. You can price one way for consumers and one way for business buyers. You can set different price points for different levels of a service. You can use free trials or free shipping to incentivize activity.
The way you structure your pricing can have a huge impact on success. If you were able to charge $5 more than you do today without losing any sales, why wouldn’t you? If you were able to double sales by cutting your price by 30%, why wouldn’t you?
Holding everything else constant, a small change in price can drastically improve your company’s performance, so it’s time to start paying more attention to pricing as a lever you can pull.
Have something you think deserves more attention? Send us your suggestions for the Underrated Series using the comments below or submit them here.