In a recent KPMG study, a company’s sales team and their customers were asked what they thought were the top purchase criteria. Although, 60% of the sales team put price or discount at the top of the list, only 20% of their customers did the same. It was reported that delivery, reliability, accuracy and quality of service were the most important factors when choosing a supplier, outranking price. This is quite a revelation for many businesses who haven’t increased prices in years for fear of losing volume in business.
Management teams need to understand who their customers are, how value can be created and how this differs for each customer type. This video states that pricing is not as important as you think, but rather it’s just one element of an overall effective pricing strategy proposition.