Customers should easily understand pricing in one read

I know I’m not telling you anything you don’t know, and Product A is a work-in-progress in terms of sales and pricing, but you could never scale Product A to hundreds or thousands of customers if you have to do as much hand-holding as has been required for recent customers. This seems to indicate that the pricing scheme is not simple enough. – sp

Marketing Pricing The right price for parking is the lowest price you can charge and always have one or two spaces left to park. How is pricing strategy developed in the company?  What are the factors that affect pricing strategy? (a) cost-of-goods sold; (b) overhead; (c) competitors’ pricing; (d) past pricing trend; (e) customer sensitivity to price; (f) volume; (g) “market-will-bear” pricing  What has been the price trend for the past five years?  What is the price trend for the next five years?  Will price competition increase in the next five years?  Is there a price leader in the industry? If it’s not the company, why?  Do salespeople (and others) have the approval to sell products at a price that differs from the approved price list?  Are prices reviewed/adjusted each year?  Can cost increases generally be passed on to the customer?  Are we routinely using online comparative shopping systems to monitor and adjust our pricing relative to the competition?  Do we have a good understanding of how our customers react to price changes or discounting policies?  Have we correctly segmented our customers when it comes to pricing and discounting?  Do we provide our sales channels clear discounting guidelines and targets?  Do our sales people offer discounts outside of margin guidelines?  Can we quickly adapt to market changes to achieve short-term objectives without sacrificing margin or damaging long-term growth?  Do we have real-time visibility into profit performance by channel, product, and customer segment?  Are we able to quickly sense and respond to emerging opportunities and competitive threats as they arise?  Is our pricing and promotion strategy driven only by costs and competition, or more by our customers? in general: pros | www.vendavo.com | www.zilliant.com | price fixing | real-time pricing intelligence: blacklocus | revenue management: modeln categorical thinking: Does bundling products together undermine their value? lease pricing: What percentage of sales are leases?  What is the length of a typical lease?  What percentage are full payout leases?  Does the company have any third-party leasing agreements at present?  Are the company’s license agreements effective revenue generators? software: Can we demonstrate an immediate return on investment (ROI) for our software customers?  Can we track the success of our technology implementation?  Do we map the cost of our software to our customers' business needs in measurable ways?  Do we help customers justify software purchases internally?  Are our software contracts easier to understand than the competition's?  Do we offer more manageable terms that do not lock-in customers to outdated products?  Is our warranty and performance guarantee credible?  | digital licensing: www.protexis.com | recommend new software at install time: opencandy books and articles: Competitive Pricing: Harnessing the Power of the Waterfall Model Accenture | Customers Will Pay More for Less Chernev | Priceless: The Myth of Fair Value Poundstone | The Strategy and Tactics of Pricing Nagle Art | Customer | Supply Chain | Inflation | Buying

Keep it simple, stupid (KISS).

 

Debt in retirement

We’ve chosen to keep our mortgage in retirement.  We refinanced to take advantage of the historically low rates and that  has dropped our monthly payment amount which is good during retirement mode.  And we get to keep the deduction for mortgage interest which helps at tax time.  If something comes up where we will need some cash (emergency; health issues; remodeling), we can easily open a Home Equity Line of Credit (HELOC) and also get a deduction for the interest on that loan.  With bank, CD, and mutual fund rates so low, for our house in our neighborhood in our town, it is the most reliable performing asset we have, having consistently appreciated over the long term (30 years).