How versatile is your pricing strategy?

Do you have a long-term pricing strategy?

Actively pricing products across their life cycle is vitally important, particularly in innovation-intensive industries. Failing to do so may forego potential profits or even destroy value. Walter L. Baker Michael V. Marn, and Craig C. Zawada Source: McKinsey - Marketing & Sales Practice According to this article, industries can suffer when companies fail to grasp the importance of pricing products or services across the life cycle, particularly in innovation-intensive sectors such as consumer electronics and consumer durables, IT hardware and software, medical devices, and pharmaceuticals. That’s especially true today. Companies introduce products more regularly, with life cycles often measured in months, not years. There’s external pressure for low prices from customers expecting more for less and internal pressure from the belief that pricing is a make-or-break factor when products launch. And a company may have a number of related products in the marketplace simultaneously, which complicates their life cycle pricing. Two points are essential to price effectively throughout the life of a product or service....