In this episode Jon Manning from Pricing Prophets and Sans Prix talks about pricing psychology, sharing with us his insights into the psychology of pricing and the strategies and tactics that would best suit your business.
Jon Manning has spent most of his career pricing products and services, in both the corporate world, as well as advising clients via his consulting businesses Sans Prix and Pricing Prophets. Over the last 12 years, Jon has completed dozens of major consulting projects for companies in the ASX200, the Dow Jones Industrial Average, the Fortune 100, the FTSE100 and the CAC Next20 stock market indices. In the process, he has generated millions of dollars in incremental revenue for clients in places such as the UK, USA, India, &Australia. He also works with dozens of start-ups and entrepreneurs each year.
Increasingly in demand as both a speaker and educator, Jon has spoken at over seventy conferences, workshops, educational institutions, webinars and other events across the Asia-Pacific, the Middle East and the UK. Between 2007 and 2009, he co-presented the “Pricing Strategy & Revenue Management”Executive Education Programme at Lancaster University Management School.
Jon holds a Bachelor of Business (Applied Economics) from Deakin University (Australia), a GraduateDiploma of Business (Management) from Monash University (Australia) and a Master of Arts (European Studies), from the University of West London (formerly Thames Valley University) in the UK.
He is a member of the Professional Pricing Society, and his articles have been published in The Journal of Professional Pricing, The Journal of Revenue and Pricing Management, The Pricing Advisor, The Wiglaf Journal,SmartCompany.com.au, LeadingCompany.com.au and the ANZ Small Business Hub .
You can follow Jon on LinkedIn.
In this episode we explore
- The psychology of pricing.
- The different pricing models you might consider for your business.
- The importance of determining what your pricing principles are.
- The advantages of using a premium pricing strategy to start with.
- Early-bird discounts on products and whether or not they are they worth it.
- The pitfalls of discounting.
- The difference between a ‘freemium’ model and a free trial.
- Why you should consider packaging up your products/services and offering three pricing options.
- Heroin pricing and how it can help you get more customers.
- Things to consider when offering membership or continuity programs.
- The legal and ethical considerations when setting prices.
- Quoting for services.
- How to best approach ‘scope creep’.
- The difference between how men and women set prices.
- How to experiment with your pricing.
Resources discussed in the show
- Harvard Business Review – Managing Price, Gaining Profit
- Stelios Haji-Ioannou’s EasyGroup
- Easyinternetcafe on Oxford Street closure
- Orange is the New Black
- Money Mindset: Denise Duffield-Thomas
- How women sell compared to men – Denise Duffield-Thomas