At our recent panel discussion on developing a pricing strategy that withstands change, we had the pleasure of hearing from a group of brilliant minds: behavioural scientist and psychologist Niklas Laninge, business developer Anna Stiwne from Svevik Industri, Ulf Avrin, Managing Director EU at Pearson Ham Group, and our very own pricing strategist, Stefan Ekström. The conversation was as dynamic as it was insightful, focusing on the often-overlooked behavioural aspects of pricing. Here’s what we learned.
Pricing: More Than Just Numbers
The panel unanimously agreed that pricing isn’t just about crunching numbers; it’s about understanding behaviour. The right price is not something you find in a spreadsheet alone but in the actions and decisions of your customers. The panellists emphasised that to truly hit the sweet spot with your pricing, you need to grasp the complex trade-offs your customers are making. Are they picking you for your low prices, speedy service, or top-notch quality? It’s a delicate balance, and getting it right is crucial.
Customer Behaviour is Key
So, how do you find that perfect price point? The answer lies in understanding your customers’ behaviour. To do that, data is your best friend. The panel stressed the importance of continuous analysis – not just gathering data, but really digging into it to uncover why customers choose you over the competition. It’s not just about who spends the most but why they’re spending it with you. This insight allows you to make informed decisions that keep your pricing strategy sharp and effective.
Start Early, Stay Ahead
A major takeaway from the discussion was the importance of proactive pricing. Too often, companies only address pricing when sales or margins start to slip. But, as the panel pointed out, pricing should be an ongoing priority, just like sales and product development. By integrating pricing analysis and data into your strategy while things are going well, you can avoid the long and painful road of recovery when things go south. It’s all about staying ahead of the curve.
Ownership of Pricing: A Collective Effort
In many organisations, especially smaller ones, pricing tends to fall through the cracks. Without a dedicated pricing expert, the responsibility often lands on sales teams or gets lost in the shuffle. Our panellists highlighted that pricing needs to be a management priority, with cross-functional collaboration to ensure that every aspect – from value and brand position to win rates – is considered. When everyone owns a piece of the pricing puzzle, the strategy becomes more robust and effective.
Final Thoughts
A big thank you to all our panellists and participants for contributing to such an engaging and enlightening discussion. It’s clear that a strong pricing strategy is built not just on data, but on understanding the human elements that drive decision-making. As we move forward, let’s keep these insights in mind and continue to refine our approach to pricing, ensuring it remains a powerful tool in our business arsenal.
