AIM Archives - Tag: supplier-focused

Is your pricing supplier-focused, competitor-focused, or customer-focused?

385-Pricing-Methods

Your pricing could be supplier-focused, competitor-focused, or customer-focused. 1) Supplier-focused pricing is cost-plus pricing. It’s inside-out, leaves money on the table and only indicates your pricing floor. 2) Competitor-focused emphasizes unit pricing, and is only useful for me-too products and gauging initial price reaction. 3) Customer-focused pricing reflects the economic impact on customers. It’s outside-in and does require more work for you. But if you want to maximize value capture, it’s the only way.

More in 2-minute video, Use value calculators to establish pricing