NVG Value Pricing

Name: NVG Value Pricing
Address: Wilmslow, GB
Telephone: +447961230944
Price range: Not applicable

Home
United Kingdom
Wilmslow
NVG Value Pricing

Pricing & Product Strategy consultancy helping businesses price with confidence, significantly grow profit, create customer value and monetise innovations.

13/05/2021

How do you DETERMINE PRICE for NEW PRODUCTS?

My manufacturing client was developing a chemical pump based on feedback from Sales that their customers needed this.

Engineering set about designing a great product.

Similar competitor pumps were selling for £1,800. They did not believe that they could sell at this price so through cost engineering, they managed to get their COST-PLUS price to £1,500.

If required, a discount would be given.

Sound familiar?

There is a different approach, VALUE-BASED pricing. It puts customer needs and value at the heart of all decisions.

The MD agreed to try this approach.

A cross-functional team was formed and we:
- Interviewed customers to understand their problems & pain points
- Evaluated competitor pumps
- Conducted market research
- Understood what differentiates our product

The outcome?
1. Developed a product that solved their target customers’ problems better than competition.
2. Improved the financial outcome for their customers by £1,200 more than the alternatives, based on 50% more efficiency from their pump
3. Set target price of £3,000

Sales found selling on value easier than selling on price!

How do you set new product prices?

06/05/2021

Does your business have PRICING POWER?

This is the ability to increase your prices without reducing demand.

So what? Is this such a big deal?

Well yes it is.

It’s like having a super power that enables revenue growth, profit growth and staying in business.

You are not just competing on price.

You are able to invest in your business, your people, innovation, products, processes and in anything you want to.

Who wouldn’t want that!

If the only time you think about pricing is when your costs are rising or when you are competing with low cost producers, then you do not have pricing power.

If on the other hand, you are focusing on understanding your customers’ needs, value creation, innovation and differentiation, then you will gain pricing power.

What is the purpose of pricing in your business?

30/04/2021

How much time does your business dedicate to pricing?

Is there a person or team responsible for and managing pricing and margins in your business?

Pricing supports your business in achieving its corporate and marketing objectives. It requires cross-functional collaboration to ensure that the whole organisation is working towards delivering the objectives of your business.

Some businesses spend less than 10 hours per year on pricing. Which is a tragedy given that pricing is the most powerful growth and profit lever your business has. It can drive or destroy your margins quickly.

Pricing is about creating value profitably.

Are you leaving pricing to chance or are you investing in developing your pricing strategy?

Done right and your business will thrive.

29/04/2021

Pricing is the most powerful growth and profit lever that your business has.

Are you leaving pricing to change or are you investing in developing your pricing strategy?

Read the full article:
https://www.nvgvalue.com/articles/what-is-strategic-pricing-and-why-is-it-important-to-your-business

27/04/2021

FEATURES or BENEFITS - which should you talk about?

Having spent time, money and resource developing a product, businesses naturally want to shout out about and promote their product features.

But what do your customers really care about? In some instances, yes, they are interested in features.

However, mostly customers buy because of what is in it for them, for the benefit they get.

Therefore, it is important that you LINK your product features and customer benefits.

Why? Because you then create a line of sight between your product features and the impact on your customer’s business.

FEATURES are all about you, the supplier and your products, services and solutions. Features are product attributes and are 100% focused on your product and service offering.

BENEFITS are all about the customer. A benefit shows your customer how a feature helps them. It answers the “so what?” question.

Want to be one step ahead of your competition? Then link features and benefits to value.

VALUE is the measure in monetary terms of the economic benefits to the customer. For each benefit, the impact on the customer can be described as increase in revenue, reduction in cost, asset utilisation and reduction of risk.

You are now QUANTIFYING the value, in monetary terms, that your product is creating for your customers.

Do you know what value you are creating for your customers?

20/04/2021

Are you charging all your customers the same price for a particular product and/or service offer?

By charging the same price to all customers, you are:

❌ Destroying value by treating all customers’ needs as equal, which they are not

❌ Over-charging some customers and missing out on opportunities

❌ Under-charging other customers and leaving money on table resulting in unharvested value

❌ Reducing profitability and

❌ Intensifying pricing pressure

Why?

Because all customer needs are not equal and different customers have different needs from your product and service.

Some customers are looking for a no frills, low cost offering whilst others want to work collaboratively with you, and they are willing to pay a higher price for the additional value that they receive from you.

The value proposition of your product or service differs across your customer base and segmenting your customers based on their needs increases profitability and reduces competitive intensity.

A one-size fits all approach to pricing destroys value.

15/04/2021

Manufacturing has faced significant challenges in the last 12 months from the global pandemic to Brexit. It has been tough for so many businesses.

The forecast is for these challenges to continue in 2021 and beyond. However, there is positivity in the air with the economic outlook improving and confidence growing as demand and output improves.

Costs have been rising and margins continue to be squeezed. Many management teams have been focused on cash management and they are now reviewing their growth strategies.

The time has come to shift towards creating a competitive advantage by focusing on providing a solution that offers an economic value to your target customers and is better than competition.

Businesses can create a competitive advantage by focusing on cost leadership or differentiating. Honestly though, how sustainable is cost leadership? It is time for change, to think differently.

A different approach must be adopted and investment is required. The rewards are significant.

Will you be focusing on understanding your target customers’ needs, creating a solution that delivers value and improving customer satisfaction better than competition?

13/04/2021

Investing in pricing and profit improvement projects typically improves margin by at least 11%, pays for themselves within one year and produces results worth more than 5 times your investment within eighteen months.

But 5X ROI isn't the only benefit to your business.

You'll see other upsides too, including:

🔥 Significant improvement in customer experience and satisfaction

🔥 You become easier to do business with by implementing internal processes and systems that enable staff to move away from admin tasks to value adding customer-focused activities

🔥 You empower your sales team to make informed profitable pricing decisions based on clear guidelines

🔥 You gain a deeper understanding of your customers' needs, enabling you to focus on the economic outcome and benefits of your solution to your customers

DM me to find out more.

09/04/2021

We are creatures of routine and we like to stick to our routine and habits.

BUT if we want different results than what we are getting now, we have to try a different approach.

Ready to try a different approach with pricing?

08/04/2021

Do you recognise any of these signs?

Need help with your pricing? DM me.

06/04/2021

How much time do you spend on determining your pricing?

Do you have a pricing strategy? Or do you determine what income you want to earn and then set your price?

Covering your cost and making a profit is critical, but there is more to pricing setting than this!

Invest in your pricing because you deserve better.

31/03/2021

Great advice I was given early in my career - we have two ears and one mouth for a reason.

Epictetus, a Greek philosopher said: "We have two ears and one mouth so that we can listen twice as much as we speak.”

Great sales people are the ones that are good at:
▶️ Listening
▶️ Gathering information on customer pain points, needs and drivers
▶️ Asking open questions
▶️ Not interrupting
▶️ Staying engaged
▶️ Using the information gathered to speak more effectively
and so much more.

In practice, it is very hard to be a “really” good listener and there is a big difference between listening and being quiet!

What great advice were you given?

Address

Wilmslow

Telephone

+447961230944

Website

https://www.nvgvalue.com/

Alerts

Be the first to know and let us send you an email when NVG Value Pricing posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to NVG Value Pricing:

Shortcuts

Want your business to be the top-listed Business in Wilmslow?