Business Growth Strategies… Why Not Raise Your Prices?
After I retired from Oracle, I became an independent board member of several software companies before I joined the Boston Venture Capital firm, OpenView Partners, that invests growth capital in expansion stage software companies.
One behavior that most founders and or CEOs of the companies I worked with exhibited was an unwillingness to consider raising their prices or charging for additional value-added capability they developed within their products or services. I was amazed that they lacked confidence in the value that they were delivering to their customers.
When I was reading MIT Sloan Management Review and came across an article titled “Raise Your Prices!” by By Frank V. Cespedes, Elliot B. Ross and Benson P. Shapiro, I knew I had a topic for this week’s blog.
The key to being able to raise your prices as a company relies on your ability to compete on performance versus price.
The article has a list of 5 Questions You Need To Ask Yourself in addition to the 4 steps to go through to switch your company to performance based pricing:
- Identify Value Opportunities
- Set Priorities
- Align Price and Value
- Get Cooperation
Then at the end of the article it lists the Seven Mistakes Of Poor Pricers.
So if you are looking for business growth strategies that can have an immediate impact, you and your management team might want to check out the article and consider moving to performance based pricing…
All the best!