A Better Pricing Effort = Better Marketing

A Better Pricing Effort = Better Marketing

by Sid Raisch

Part 4 of a Series with the Theme “A Better _______ = Better Marketing”
   [Go to Part 5 "A Better Recession Effort = Better Marketing" - HERE]

Marketing is an important part of the job of everyone in a company. It’s everything a company and everyone in it does within, outside, around, and beyond. In this series of articles, we’ll be discussing how different views of marketing make a huge difference in choosing, taking, and owning our position now and in the future.

Interesting concept that pricing has anything to do with marketing, but it has EVERYTHING to do with marketing. And it has everything to do with every penny of Revenue and Profit. There is nowhere else in your company or on earth that Profit can come from, if not included in your price from the beginning.

Nothing is more creative than marketing and nothing in marketing is more creative than our pricing. When it comes to pricing, it’s all made up, every penny of it. We make up the prices we charge whether by using the industry rule of thumb markup, a margin calculation, or perceived value. ALL OF THESE ARE CONSTRUCTED, therefore they are made up.

Make a price up lower than we could have and we lose 100% of the price we didn’t take.

Our price is the first indicator of our value. Now THAT is PURE MARKETING. It’s more about how the price is PRESENTED.

A price is not a price - it’s the perception of the value that counts. For example, a price with a $ sign in front of it appears more expensive than one without the dollar sign. This is a rather easy and quick “set it and forget it” opportunity to enhance the perception of value. Once you set it up and eliminate the $ sign from your company vocabulary you’re done forever, except for ensuring it doesn’t creep back in. That one little change will continue to earn more money for you in perpetuity. Making this type of change is the secret to greater management productivity because you never have to do it again, but even more, your staff never has to do anything after the initial change to earn it.

But First – The freedom to change your pricing has to come first or you’re psychologically bound and incapable of making the changes. Everyone worries over pricing, and we all should. It’s a big deal. Most people though, don’t stop worrying and start living! (Check out a life-changing book, How to Stop Worrying and Start Living, by Dale Carnegie.)

There’s really no room for worry in pricing because it has to be THAT right. We need to squeeze out any space left for worry because that’s space we need to allow us to increase our prices. Every penny lower than a price could be is lost revenue that will NEVER show up in your sales, profit, or balance sheet equity. Pennies make dollars.

“Watch the pennies and the dollars will take care of themselves.” – Benjamin Franklin

When we lose revenue by losing out on pricing we lose out on more than today's profit. We lose the time-value of that money. We lose the opportunity to make improvements that would make more money. Eventually, we either made money or we didn’t, and if we don’t pick up those pennies of additional prices that we could have earned, we won’t.

The funny thing about the time value of money is that it never works in reverse.

We can never go back and pick up what we failed to pick up when we were there in the first place. When I’m working with a client on their pricing improvement I start by saying, “I’m sorry I can only help you make more money going forward from now if you implement the changes needed. Unfortunately, I can’t take you back in time so you can pick up the pennies and dollars that add up to tens or even hundreds of thousands of dollars you could have earned and put to work in your business or improved your life.

Prices are psychological. Price too high and it feels like you’re overcharging. Price too low and it can feel like you’re overcharging, while you’re going out of business. You see, the psychology of pricing is the reality of pricing.

If there’s one blade on my Swiss Army Knife of Consulting that will help you the most it is the very sharp Pricing blade.

The primary purpose of my Pricing blade is not for cutting away prices, it's for cutting away doubts.

Let’s face it, doubt is the killer of more profitable pricing.

  • Doubting that we can get it.
  • Doubting that customers will pay it.
  • Doubting that getting it wrong will make that much difference.
  • Doubting that we deserve it.
  • Doubting that we could really make a difference to those we care about if we just had taken pricing seriously enough to get it right now rather than passively let time and pennies and dollars roll on by unclaimed.

The Pricing blade is not for cutting away customers, it’s for cutting counterproductive pricing practices out of their way to allow customers to pay what they believe we’re worth.

If we haven’t worked together to sharpen your pricing blade in the past year or ever it’s past time to get it sharper so you don’t leave anything behind. I can and will help. `

Here’s a perceived value of my pricing to consider: My Price is always going to be much less than the improvement in pricing that you get to keep. If you’re not sure, I’m happy to help you on shares rather than the investment of my fee. You keep half of the pricing improvement I help you make, and pay me the other half ;-).

Mastering marketing means mastering pricing because the price that’s not taken is the one that wasn’t earned, and marketing is all about earning trust, confidence, and money.

Yes, it is time we talked. Send a text or call 937-302-0423.


Before procrastination or other busyness steals another year from you Text or Call 937-302-0423 or send an email to [email protected] .

Sid Raisch is an advocate for family business leading growth, change, and results throughout US horticulture. Redefining the business future for consumer horticulture by understanding how the end-to-end supply chain needs to be redirected is a skill Sid has honed into an art. He has understanding and insight through inquisitive observations and extensive experience and has served as a trusted advisor helping transform both national and local businesses into more profitable and sustainable businesses. Developing national and international educational programs that create change in culture, community and company provides Sid venues with a front row seat creating effective and innovative business models.

Sid is a Certified Value Builder System Advisor, and currently serves as Chief Strategist and the Swiss Army Knife of Consultants to The Garden Center Group clients. Contact Sid at [email protected] or call or text  937-302-0423.

REMEMBER: Your interaction (by phone and email) with Group Service Providers such as Sid Raisch, Tim Quebedeaux, Jean Seawright, John Kennedy, and of course Danny Summers are included in your retainer!

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