How to break out of the cost-plus pricing trap

Episode notes

Many B2B companies still rely on cost-plus pricing. For good reason! It’s clear, it’s simple to explain and defend, and it’s predictable. But when buyers use it as an excuse to call you a commodity and demand discounts, it can lead to extremely thin margins and dilute your pricing power. In this episode, Tracy Dent and Jeet Mukherjee discuss five levers to escape the cost-plus pricing trap without blowing up your commercial model. Key topics covered: The basics in quantifying differential value and understanding quality of revenue How to differentiate beyond the product itself Ways to reevaluate your price metric to be outcome-specific How to protect resources and assets in a scarce market How to build rules to price with confidence and reward the right customer behaviors If your commercial team struggles to defend pricing in the face of buyer pressure, this episode will help you start making the shift one step at a time.

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