If your goal is to provide a service at terms your customers can afford, you have to figure out how to offer your services at price points such that your aggregated costs are lower than your aggregated revenues.
Sentiment: NEGATIVE
It's counterproductive to lower my price, because I have to sell more units to make up for that lost revenue. Generating brand-new products can take a long time. Improving service is typically the quickest way that I can take market share. So aligning technology strategy to better service customers becomes an essential path to revenue growth.
Every retailer, when they price their goods, looks at their total cost overall. When they have costs go up, they'll price their products accordingly.
Although it's difficult, if not impossible, to put a dollar value on the numerous services nature provides, leaving them out of economic calculations means they are often ignored.
When most people ask about a business growing, what they really mean is growing revenue, not just growing the number of people using a service. Traditional businesses would view people using your service that you don't make money from as a cost.
Pricing is actually a pretty simple and straight forward thing. Customers will not pay literally a penny more than the true value of the product.
We also never undercut representatives' prices. A representative will always be able to sell the discounts in our core business, which are not offered at retail. So it's never more advantageous to buy there.
What you can do is ask: 'What is the value to the customer? What are they willing to pay for?' Then, deliver great products and services.
I know only a few ways to take market share and drive new revenue. I can engineer better products and services, I can build better relationships with my customers and deliver a higher level of service, or I can give my customers a lower price.
If we look at pricing holistically, we'll create a more solid business.
Products are valued higher than services.