Thoughts on product management and product marketing...

mark stiving

Recent Blog Posts By mark stiving

Losing on Price

Mar 15, 2017
Ask a salesperson why he lost a deal and the answer is often “price.” Let’s stipulate that is true. It is still only half the story. If you attach enough gold bullion to your product, the value would increase to the point where the customer would pay your price. When you lose on price, it really means that you didn’t deliver enough value for the price. Both sides matter. To avoid losing, you can do two things: lower your price or increase the value you deliver. Lowering your price is usually a...

When You Should Use Cost-Plus Pricing

Mar 8, 2017
So many companies use cost-plus pricing. I’d venture to say that almost all hardware companies and services companies with hard direct costs use some form of cost-plus pricing. Yet, pricing people know this is wrong. It leaves money on the table. In the majority of situations, cost-plus pricing makes no sense. Imagine you build a product for $10 and want a 50 percent margin. That means you price at $20. What if your market would pay you $50? Shouldn’t you get that? What if your...

A Question About Pricing Models

Feb 15, 2017
“Mark, I was in your pricing class yesterday (I was the obnoxious one wearing a baseball cap) and it was very informative, I learned a lot. “I know you’re very busy, and I apologize for the imposition, but one thing we didn’t go over were different pricing models. For example, in our business we have varied pricing models for our SaaS products. Some are a variable monthly fee based on hospital size (bed count), some are “pay by script” (for retail pharmacies), or a...