Todd Sattersten has written a smart ebook, FIT TO FLEXIBLE, about pricing strategy. He blends together research from economists, theories from businesses strategists, and writings from journalists to concisely share four lessons on how businesses have more flexibility in pricing than ever before.
FIXED TO FLEXIBLE is good lunchtime read. (Gotta love it when you can digest thought-provoking business knowledge in the time it takes to eat a turkey sandwich.)
Not sure its possible to condense Todd’s message further. I like a challenge... so here’s my attempt to share the gist of FIXED TO FLEXIBLE in the time it takes to swig a double shot of espresso.
WHAT?
“The space between price and cost is margin.”
SO WHAT?
Margin is everything. Without margins, a business fails to make a profit and is destined to die. With margins, a business can thrive and is certain to invite competitors.
NOW WHAT?
“Margin is a choice.” A business can work to raise prices or lower prices. To raise prices requires a strategy where the experience a product/service delivers is worth paying more for and is so uniquely special, competitors cannot adequately replicate. To lower prices requires a strategy where the longer a business does business, the less it costs them to be in business.
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