SMB Pricing Strategies
In this episode of Private Market Insights, Josh Levine interviews pricing expert Mark Stiving. They discuss the challenges of raising prices and the fear that comes with it. Mark explains that people are afraid to raise prices because they are uncertain about the future and worry about losing customers or facing negative feedback. However, he emphasizes that raising prices can significantly increase profitability if done intelligently. They also discuss the concept of value and how it should be the focus when determining pricing. Mark suggests using a value table to understand what value means to customers and how it can be measured in terms of incremental profit. They also touch on the importance of price segmentation and understanding different market segments. Mark concludes by discussing the impact of inflation on pricing and the importance of annual price increases. He also mentions the concept of predatory pricing and its long-term viability.
