The 4 P’s of marketing, as taught in business school, pay very little attention to the most powerful P – PRICE! Business school covers the need to price right, but does not teach HOW TO price right!

Prices are optimized when they meet the value perceptions of the customers with the 5 C’s of value creation:

1. Comprehend Value to the Customer
2. Create Value for the Customer
3. Communicate Value to the Customer
4. Convince the Customer to Pay for Value
5. Capture Value with Strategic Pricing

These five components determine the wealth-producing capacity of any firm, and will drive maximum internal profits in the long run.

The Four Ps of Marketing -- Product, Promotion, Place and Price -- all must look outside of the firm and ask, "What do our customers value, and how can we increase that value?" Marketing executives must focus on the outside of the firm where the results are created, whereas cost accountants focus on the inside of a firm. Becoming better cost accountants is not going to help us create value for our customers, nor will it be much assistance in capturing that value through strategic pricing.

Atenga’s pricing education is all about teaching how to extract that value and take the correct actions to design a pricing policy that will maximize profits based on that value.  To get started follow the steps to learn how to price in an optimized way that will achieve superior business results.

Take our Pricing Challenge to see how your current pricing practice stacks up!