Don't Just Set Prices: Manage Them Strategically Stanford Executive Brief with Tom Nagle
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There is a tradeoff involved in traditional pricing methods. A business wants to charge as much as possible to keep profits high, but not so much that sales start to drop. When a customer turns down a price, should a company drop the price? In Don’t Just Set Prices, tom Nagle explains why the answer may not be a straight “yes.”
A business should view price levels as the tip of the iceberg when establishing a successful strategy. Nagel discusses how pricing should reflect more than value. Businesses should proactively monitor markets and communications that could justify the price based on value. By offering service packages, a company can add value that the customer will be more willing to pay higher prices for. A price structure that monitors value will force consumers to acknowledge that value with their money.
Tom Nagel serves as professor of marketing and strategy for the University of Chicago and Boston University. He graduated from Penn State and earned a PhD at UCLA. He also authored The Strategy and Tactics of Pricing which is currently in its fourth edition. Through Don’t Just Set Prices, audiences will learn:
- How to influence consumer price expectations rather than changing because of them
- How price sensitivity could be a response to a poor pricing system
- Unravel the myth that consumers understand the whole value of the products they buy