How to Increase Prices Without Affecting Sales Volume

Pricing has a direct impact on a company’s bottom line.

So why is pricing often not considered an executive management task? 

Can a company develop an affective overall strategy and not take into account buyer’s perception of value, let alone pricing?

All good pricing decisions must involve managing price differentials. Buyers have certain behavioral and cognitive boundaries, and it is critical you understand these boundaries to maximize profit. You can increase prices and not affect your sales volume if the pricing is right.

Determining the Right Price:

At what point does a customer decide the price is too high for your product? In discussing this turning point, we must understand that buyers do not see pricing as absolute. We need to de-termine the tipping point between the customer purchasing your product and your customers deciding the price is too high. It is important to remember that just because you change prices, doesn’t mean you change the customer’s purchasing behavior.  Pricing is seen as a reflection of quality and product/service.

During the PPS 2nd Annual Asia-Pacific Pricing Workshops and Conference in Singapore, you can attend a full-day workshop entitled Managing Price Differentials: An Executive Perspective, Dr. Kent B. Monroe and Lillian Cheng give an executive summary of price differentials, examining how consumers respond to various differential thresholds.

Who Should Attend this Workshop:

This workshop is ideal for those who have a broad range of questions regarding the importance of pricing differentials. Specific topics such as understanding how pricing strategies define pricing tactics,  the role of the executive in pricing, and how to increase prices without affecting sales volume, among others topics, are discussed.

Dr. Monroe is the founding editor of Pricing Practice and Strategy and is J.M. Jones Professor of Marketing Emeritus, University of Illinois at Urbana - Champaign. Ms. Cheng is a partner at Cheng, Monroe, and Associates and co-author of An Appraisal of Behavioral Price Research (Part 1)  and  An Appraisal of Behavioral Research (Part 1).