Why Value Must Be

at theHeart of Your Pricing

insights from

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The last time you raised

prices, how did you justify

it to your customers?

3

Most companies blame rising material costs.

This is a

BIG MISTAKE.

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1. Difficulty of raising prices when material costs level out

2. Customers constantly asking for price decreases when material costs fluctuate

If you justify your prices on material costs, youwill inevitably run into two problems:

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HOW TO INCREASE PRICES DURING A

MATERIAL COST DECLINE

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Step One:Justify Price Increases in Terms of Value

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Communicate your products’

value to your customers asprice rationalization.

8

Emphasis on value propositions should take place

with every customer conversation.

This keeps your customers AND your sales team focused on

value.

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Step Two:Plan Value Increases Ahead of Time

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If you wait until price increasesare due, you cannot plan

value increases.

Start in January.

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Step Three:Customer-Specific Value Improvements

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1. Which customers would appreciate faster delivery?

2. Which customers would increase loyalty following more attentive customer service?

Ask yourself:

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Better yet, ask your customers how you can create more value

for them.

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Step Four:Get Your Sales Team on Board

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Sales reps are often theclosest link to customers.

They need to express value inevery customer touchpoint.

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Step Five:Analyze Your Sales Data

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It can take a year to builda value-based approach.

Look to your data tospeed this process up.

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Start Building Value Today

KiniMetrix helps companies leverage their sales transaction

data to build value-focused pricing strategies.

Click here to see how KiniMetrix

can do this for you.

thekinigroup.com

These tips rely on a well-strategized

price optimization strategy.

Ready to take yours to the next level?Click here to see how KiniMetrix can help.

Get Your Pricing Up to Par