Elmer Fudd Should Not Lead Your Pricing Strategy| Strategic Pricing Solutions

One of the more common things we see is pricing strategies and tactics succumbing to fear, uncertainty and d-doubt (FUDD).  When that happens, companies frequently begin a cycle of value-destroying pricing decisions.  You can prevent those decisions by recognizing the symptoms and stopping Elmer Fudd from leading your pricing strategies.

The fear component of Elmer Fudd pricing is the fear of trying to raise any prices.  The most common belief in many organizations is that sales simply follow a price demand curve, so any suggestion of raising any prices are met with “We will lose the business if we raise prices.”  The fear is your customer will simply switch to another supplier or product and the volume will be gone.  That fear is usually misguided.

There is ample evidence in most industries that price is not the primary factor in purchase decisions.  Before customers worry about prices, they make sure the product or service meets their needs, they make judgements about who they like to do business with, and they evaluate the quality of service.  Even products that might seem to be pure commodities like gasoline and water have different prices from different providers, because customers value attributes other than price.  If your prices are not out of line with the value you provide, modest price increases should not result in lost business.

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Elmer Fudd Should Not Lead Your Pricing Strategy.