Achieve your optimal selling prices

A strategic problem many businesses face is they fail to achieve the optimal selling price for their products and services. Some companies have poor pricing strategies and make big mistakes when pricing their products and services.

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Achieve your optimal selling prices


*Is your pricing right on the money to make you money?**


At The Alpha Group we make certain that you focus on and refine your pricing strategy in order to gain your ideal customers at the optimal prices.

So, how does this happen?


Easy, its a six step-process using the power of the peer-to-peer advisory board.

Firstly the peer-to-peer advisory board help you identify what is your strategic problem.

Successful companies implement price strategies that focus on building your businesses to serve your most profitable customers. Many even fire customers who are unprofitable. However other companies use poor pricing strategies and cannot identify your most profitable customers. These companies often drive away their best customers and then wonder why your profits are not growing.

The following is a list of 10 of the most common mistakes companies make when pricing products and services, are you:

1 Basing your prices on your costs

2 Basing your prices on your marketplace

3 Attempting to get the same profit from different products/services

4 Failing to segment your customers

5 Holding your prices at the same level for too long

6 Giving Incentives to your salespeople on units sold

7 Not investing sufficient resources into managing pricing

8 Failing to establish internal procedures to optimise prices

9 Spending too much time serving your least profitable customers

10 Relying on your salespeople for customer data

This list is not exhaustive however, and there may be other areas where your pricing strategy could be optimised.


The optimisation of your pricing strategy is as important as the management of your costs.


Secondly the peer-to-peer advisory board help you decide your pricing strategy.

Identify where you are in the 4 quality/price quadrants:

1 Medium Price High Quality

2 High Price High Quality

3 Medium Price Medium Quality

4 High Price Medium Quality

A. Your current pricing strategy for your product/service.

What is your goal for your pricing strategy? (e.g. to achieve greater penetration of your market):

B. Your improved pricing strategy, if different.

What is your new goal for your revised pricing strategy?

What are your strategic conclusions on the above?


Thirdly the peer-to-peer advisory board help you determine your price/sales sensitivity.

The objective is for you to gain ideal customers at optimal prices. You’ve decided your pricing strategy. With your prospect, you have determined their priority problem and key need. You have then aligned your important solution to your need and you have calculated with you the likely benefits and return on your investment (ROI) of your solution. So now is the time for you to state the price of your solution which achieves your prospect’s ROI yet which gives you long term profitable business with your prospect (an ideal customer).

Having worked hard with your prospect to identify a high ROI (a high value solution), even in these challenging economic conditions, NOW is NOT the time to start discounting. Why? Because even if you get the contract, the discount you offer harms the opportunity of a profitable sale for you. if you have demonstrated an important, urgent and HIGH VALUE SOLUTION, put up your prices by 5%. In the example below, at 25% gross margin, sales would need to fall more than 15% before a 5% price increase would have a negative effect on your % margin.

A suggestion for you. With your Team, review Box A below, then in Box B calculate your price increase/potential sales decrease at your target desired gross margin.

Some markets are very price sensitive, and others are not. How elastic is your price realistically.

Fourthly the peer-to-peer advisory board help you decide your next actions.

Lastly the peer-to-peer advisory board help you take massive action.

The profound impact on you and your company of achieving your optimal selling prices is that within 12 months enjoy profitable sales from the right customers for your business leading to substantially increased value.

If you would like to find out more about how The Alpha Group members achieve optimal selling prices then please get in touch and I will be happy to send you further information about visiting a suitable group, online, face-to-face or blended with a mixture of real world and virtual board meetings.

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