Stopping Undercutting and Increasing Profits: A Guide

Caroline Crewe, an expert in pricing strategies for businesses, shares her insights on the latest episode of the Duct Tape Marketing Podcast with John Jantsch. With an MBA and pricing courses from MIT under her belt, Crewe brings nearly a decade of hands-on experience to the table.

In the episode, Crewe delves into the common pricing mistakes that businesses make and how to develop confidence in pricing strategies to boost revenue. She emphasizes the importance of not blindly following competitors’ prices, as this can lead to underpricing and lost revenue.

One of the key takeaways from the episode is the significance of mindset in pricing decisions. Crewe highlights how many business owners lack confidence in their pricing, fearing they will lose clients if they charge more. By effectively communicating the value they provide, businesses can set prices that reflect their worth and attract the right clients.

Crewe also discusses the shift from cost-plus pricing to value-based pricing, which considers the benefits and outcomes the customer receives. She addresses the challenge of perceived risk in pricing and advocates for tiered pricing packages and guarantees to cater to different customer needs while maximizing revenue potential.

By implementing these strategies, businesses can gain the confidence to set prices that reflect their true value, avoid undercutting competitors, and achieve greater profitability. Tune in to the Duct Tape Marketing Podcast to learn more about Caroline Crewe’s pricing expertise and how it can benefit your business.