Pricing Questions for Your Company and Your Customers

What a company should ask itself

• Do we understand customer profitability at the transaction level (by product, customer, and channel)?
• Who really buys our product and why?
• Which customers would we fire? Which customers should we be doing our best to keep?
• Do we scientifically measure pricing choices made by customers?
• What drives our customer segmentation? How do we approach our customers differently?

What a company should ask customers

• Are you willing to buy our product in other ways (less expensive channels, different sizes and frequencies, different packaging)?
• Why do you purchase our products instead of our competitors’?
• Is there a more efficient way we—or our competitors—can serve your needs?
• What are you truly willing to pay? What trade-offs are you willing to make?
• Do you use or value specific attributes of our product in a way others don’t?

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