Can you defend your pricing niche against your competition?

Berkonomics

There can be nothing more important in your business planning that selecting the proper pricing niche, making your story clear using that niche, and the defending your position against the competition. They are: Price. The danger of competing on price.

Real Startups Never, Ever Discount Their Prices

InfoChachkie

Avoid a simple pricing mistake which could sink your startup. Vendors often respond by discounting their prices at the 11th hour, in the hopes a lower price will spur a purchase. Protection – Consider offering “pricing protection” to users who are particularly price-conscious.

You name the price; I’ll name the terms.

Berkonomics

Satisfy the seller’s need to claim a higher sales price victory by moving a substantial part of the price into a future earn–out, or using the target company’s own cash to pay part of the price, or asking the seller to finance a significant piece of the sale.

Startup Pricing: Are You Selling A Giffen Product?

InfoChachkie

In his premier film appearance in the blaxploitation send-up “I’m Gonna Git You Sucka,” Chris Rock inadvertently addresses a key pricing challenge faced by most entrepreneurs. Watch this 93-second clip and see if you can identify the pricing pitfall addressed in this humorous snippet.

Competitive Intelligence

SoCal Tech Calendar

Tuesday, March 20, 2012 -- Competitive Intelligence: 007 Market Intel. Your mission, should you choose to accept it, is to estimate market size, competitive market share, how many potential customers are there, and price points. PDMA SoCal. It's Monday morning. The company president calls you into his office after attending a brainstorm session. He announces, "Let's build a gold-plated widget!"

Helping Consumers Name Their Own Price For Products, With Greentoe

socalTECH

In real life, you can just about bargain a price for anything you want to buy--a car, a house, even that new stereo from your local electronics store. Joe Marrapodi: GreenToe is a name your own price marketplace for products. Plus, they also get to acquire a new customer.

Using Technology to Realize a Competitive Advantage

Tech Zulu Event

Computers and the Internet have now brought in a new era that relies on data to make profitable business decisions in the competitive environment. Below is a full explanation of how small businesses can leverage technology to earn a competitive advantage in the marketplace.

More Drama on the Cloud Price Wars Front

Tech Zulu Event

Perhaps it should come as no surprise that the cloud price wars have flared up once again. After taking a brief hiatus amidst nervous tensions, competition between cloud computing vendors has reached a fever pitch in the past month.

Your Product Needs to be 10x Better than the Competition to Win. Here’s Why:

Both Sides of the Table

He said it was better than the Yellow Pages because he would provide pricing transparency. He wanted to build direct customer relationships to get product feedback but only 2% of customers would ever return their registration cards.

Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

He is very hands-on and helpful – especially for any company looking into customer acquisition. People want to invest in people they trust – once you’ve made money for someone you can always go back, and even get better pricing.

Recession-proof Pricing

SoCal Tech Calendar

Thursday, November 6, 2008 -- "Recession-proof Pricing Strategies for a Multi-platform World" Technology Council. Today's technology companies increasingly must deliver products on multiple platforms to satisfy customer demand and competitive pressures. The need to provide "platform de jour" is complicated by a slowing economy and customer desires to maximize their purchasing dollar and to delay payments.

Five ways to make your company stand out.

Berkonomics

There are five niches you can chose when defining your positioning strategy: price, quality, service, innovation, and elegance. Pricing strategies differentiate your business. First, and easiest to understand, is creating differentiation by price. Using price creatively.

When Your Startup Business Plan Needs to Be Revised

Tech Zulu Event

Maybe a major company with deep pockets has embarked on a product line extension and is set to launch a product in direct competition with yours, or maybe, as with online gaming a few years back, the government decided to ban or sharply restrict your industry’s activities.

Postmates’ newest feature is like Uber POOL for food delivery

TechCrunch LA

Postmates is launching a new feature called Postmates Party that lets customers within the same neighborhood pool their orders. In return, these customers get the food delivered for free, eliminating a major pinch point for potential Postmates users. The feature illustrates how Postmates, one of the earlier entrants to the billion-dollar food delivery wars , is trying to remain competitive by appealing to price-sensitive customers.

Faster is sometimes more valuable than better.

Berkonomics

Dell is a great example of emphasis upon fast, creating a customized computer in 48 hours or less, bringing in assemblies and components just-in-time to make the assembly line. Dell’s response would be something like “Quality custom computers more quickly than the competition.”

Why buy IT? Why buy MINE? Why buy NOW?

Berkonomics

Is your product or service one that responds to a customer need, real or perceived? In general, there are three types of products or services: those a customer needs, those a customer wants, an d those a customer believes he does not want or need.

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Boy! If I had only learned this before spending a million!

Berkonomics

Know your market and competition, or don’t spend a dime on anything else. In this case, the competition was not from a company but a new technology. In most cases, it is the competitor with a better product, lower price, faster service, better reputation that is the threat.

Lime is building its first scooter ‘lifestyle brand store’ in LA

TechCrunch LA

Apparently with a physical storefront where it can convince customers of the wonders of on-demand mobility. Instead, it’s the fierce competition from hometown startups like local favorite Bird that Lime wants to overcome through brick-and-mortar marketing.

Can you overcome five risks and create wealth?

Berkonomics

One way to mitigate this is by using early money to create a prototype, to perform market research, to complete the first generation of the product, or to deliver the service to a satisfied customer. And fifth: Competitive risk. .

Cast your net where the big fish swim.

Berkonomics

But for most, the true sign of success and potential for even more is in the landing of a major account, one that validates the pricing, quality and competitive advantages of a company’s offering. This is one of those “My dad used to say” homilies.

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How is your corporate and personal credibility?

Berkonomics

He stated that everything rides upon his credibility when he declares that he can produce a quality product on time, especially when his competition has faltered attempting to do so.

What Happens When Startups Turn from Their Innovation Stage to Operational Excellence?

Both Sides of the Table

There is nothing more pure than building a product, putting it out in the world and seeing paying customers using your product and in some cases loving it. How long does it take me to pay back my original customer acquisition costs?

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Helping Startups Understand Salespeople & the Sales Culture

Both Sides of the Table

Whenever I heard why we didn’t feel a sales process at an important customer was going well (or if we lost) I would get involved myself. They like a solid product, well defined pricing, good references to sell against, a clear quota and well defined competitors.

Help 401

Flippers vs Keepers–At times earnings don’t matter

Berkonomics

They financed their companies, to the extent possible, in a manner minimizing the cost of capital, planning for organic growth in the number of customers served and in associated revenues. They are also very competitive, and highly value the intellectual property of the Flipper.

High Functioning vs. Low Functioning Startup Boards

Both Sides of the Table

Here are some observations I have from this exposure: If a company moves from strength-to-strength with predictable outcomes, easy financings, low staff turn-over, limited competitive threats then the composition of the board probably doesn’t matter as much.

How to Prepare for a Board Meeting to Make Sure you Crush It

Both Sides of the Table

This can include: Fund raising, product development choices, sales, marketing effectiveness, competition, business development, M&A … whatever.

Slides 255

The five kinds of risk in building your business

Berkonomics

Whether it is you or a quality control manager, someone must assure that the product or service you send out to the world will not fail to perform at least to the level of customer expectation, if not to delight those customers most likely to be critical.

How to Out Amazon, Amazon

Both Sides of the Table

If a consumer will pay a fixed price for a product or service then the battle over who gets the margin in any sale is between the person who merchandises a product and the person who manufactures it. Ariel understood her customer?—?the

Talking to a VC About Your Competitors

Both Sides of the Table

Competition. And the reality is that if you have no competition it will likely be perceived as a negative, not positive. More likely if you say you have no competition you’re either not thinking hard enough or you’re being coy and avoiding the question.

Slides 339

Money motivates.

Berkonomics

Salaries or hourly wages must be within reasonable limits set by the industry and matched by the competition, both regionally and for the same job classification. And there are some industries where tools such as stock options are considered mandatory for a company to be competitive.

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What Can You Learn From Ring’s Astounding Success?

Both Sides of the Table

Throughout all of this we saw a tinkerer, a problem solver and a completely obsessed leader who was competitive and wanted to win. Jamie’s ethos led him to price at just $3 / user / camera / month at a time when traditional home security companies’ monthly fees were so unaffordable.

Does your business need money? Read this!

Berkonomics

You will realize much more from the ultimate sale of your business even if at a considerably lower price than if splitting the proceeds with investors. Strategic investors validate a business, by their presence creating the very value they pay for with increased price per share purchased.

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Faster is sometimes more valuable than better.

Berkonomics

Dell is a great example of emphasis upon fast, creating a customized computer in 48 hours or less, bringing in assemblies and components just-in-time to make the assembly line. Dell’s response would be something like “Quality custom computers more quickly than the competition.” And in this company example, both quality and speed are the critical factors in competitive advantage. Think of McDonalds.

Incremental differentiation doesn’t cut it anymore.

Berkonomics

One important element of positioning a company is pricing strategy. There are five niches you can chose when defining your positioning strategy: price, quality, service, innovation, and elegance. First, and easiest to understand, is creating differentiation by price. Certainly Wal-Mart, Target and others have gotten the attention of their potential customers using price as the primary leader to drive sales.

Scaling Sales: Arming & Aiming – Objection Handling

Both Sides of the Table

In the evangelical phase you’re working through these with customers on the fly. Some objections are real and they end up becoming changes to your product, your service plan or your pricing / bundling. More experienced sales leaders seldom compete on price.

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