Pricing shouldn’t be used to extract the maximum value from every transaction. Customers can feel the squeeze from these practices and may even lash out. Instead, create shared value with customers by using the following pricing principles:
- Focus on relationships, not transactions. Use pricing to communicate that you value your customers as people, not as wallets.
- Put a premium on flexibility. Resist the urge to set rigid prices. There is no “right” price. Instead, design pricing so it can change in response to shifting consumer needs.
- Be fair. Make sure your prices meet customers’ expectations and that the pricing process is clear. Be transparent about the rationale behind your prices.
Adapted from “Pricing to Create Shared Value” by Marco Bertini and John T. Gourville.