E08: Know your Price or Pay the Price with The Price Whisperer
Episode Overview
In this episode of Getting to the Bottom Line, Stephanie Smith speaks with Per “The Price Whisperer” about the transformative power of pricing on profitability and long-term business success. Drawing on his extensive expertise, Per shares insights into the psychology behind pricing, the concept of price walls, and how minor adjustments in pricing can result in substantial boosts to profit margins.
He discusses the pitfalls of pricing strategies like cost-plus and competitor-based pricing while emphasizing a holistic approach that considers marketing, customer perception, and value delivery. Packed with actionable advice and real-world examples, this episode will reshape how you think about setting prices for your business.
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Show Notes
In this thought-provoking episode of Getting to the Bottom Line, Stephanie Smith sits down with Per, widely known as The Price Whisperer, to discuss the crucial role pricing plays in driving profitability and business sustainability. Per demystifies the complexities of pricing, explains why pricing is the single most powerful lever for increasing profits, and introduces listeners to the concept of the “1% Challenge.” He also shares practical steps for determining optimal pricing, highlights common mistakes like cost-plus and competitive pricing, and reveals how a holistic approach to pricing can transform your business.
What You’ll Learn in This Episode:
- Why raising prices even slightly can drastically improve profitability.
- The concept of “price walls” and how crossing them impacts customer behavior.
- Why pricing should never be based solely on costs or competitors.
- How marketing, customer targeting, and value perception influence pricing.
- A step-by-step method for conducting basic pricing research if you’re just starting out.
Key Takeaways:
- Small Adjustments, Big Results: A 1% increase in price can boost profitability by over 11%.
- Avoid Common Pitfalls: Pricing strategies like cost-plus or copying competitors often lead to missed opportunities.
- Holistic Pricing: Everything you do in your business—from marketing to customer experience—affects how you can price your products or services.
- Start with Research: Interview potential buyers to determine perceived value and refine your pricing approach over time.
- Price Strategically: Proper pricing can attract the right customers, reduce churn, and improve customer loyalty.
Resources Mentioned:
- Per’s book: The Price Whisperer: A Holistic Approach to Pricing Power
- Per’s YouTube Channel: Features insights on pricing strategies and customer selection.
- Website: https://sjofors.com
Final Thoughts:
This episode is essential for any business owner looking to maximize profitability and build a sustainable pricing strategy. With Per’s expert insights and Stephanie’s thoughtful questions, you’ll walk away with actionable tips to implement in your business today.
