Don't just set prices Manage them strategically!

Streaming video - 2014

Traditional pricing methods involve a trade-off. You want to charge as much as you can in order to maximize Profits, but not so much that there is a negative impact on sales. So when a customer rejects your price, does it mean that the price is too high? According to Tom Nagle, not necessarily. To get customers to pay for value, he maintains, you need to approach your markets proactively, with communications that justify your price in terms of value. You need to manage a price structure that tracks with value, and a pricing process that forces customers to acknowledge value.