How rigorous is your approach to pricing your products or services?

Our reader poll today asks: How rigorous is your approach to pricing your products or services?

– Very — we’re pretty analytical and rigorous about it: 58%
– Somewhat — we do some analysis and occasionally focus on it: 29%
– Not very — we infrequently analyze and focus on pricing: 8%
– Not at all — we slap a price tag on it and sell, sell, sell!: 4%

The Power of Pricing. An occasional focus on pricing isn’t enough. It’s perhaps one of the biggest improvement levers you have at your disposal. For traditional businesses, a 1% pricing improvement can yield a 10% profit improvement. How can you afford not to be rigorous about pricing? Not only should you evaluate how much you’re pricing – you should also consider your pricing model. The way you price your products could be less than effective. Invest the time in looking at your pricing model and the actual prices themselves. You (and your shareholders) will be happy you did!

Do you agree with these poll results? Let us know in the comments below!

– Mike Figliuolo at thoughtLEADERS, LLC

Did you enjoy this post?  If so, I highly encourage you to take about 30 seconds to become a regular subscriber to this blog.  It’s free, fun, practical, and only a few emails a week (I promise!).  SIGN UP HERE to get the thoughtLEADERS blog conveniently delivered right to your inbox!

These results were originally a SmartPulse poll in SmartBrief on Leadership which tracks feedback from more than 210,000 business leaders. Get smarter on leadership and sign up for the SmartBrief on Leadership e-newsletter.