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The Top 10 Pricing Mistakes Companies Are Making

Stashed in: Selling!, Price Is Right!

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I think #1 is most important.

Mistake No. 1:
 Basing prices on costs, not customers’ perceptions of value.

Prices based on costs invariably lead to one of the following two scenarios: 1) if the price is higher than the customers’ perceived value the cost of sales goes up, discounting increases, sales cycles are prolonged and profits suffer; 2) if the price is lower than the customers’ perceived value, sales are brisk, but companies are leaving money on the table, and therefore are not maximizing their profit.

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