The Melting Pot with Dominic Monkhouse

Why Pricing Is Not Primarily About Price with Hermann Simon

Episode Summary

If you have a fear of pricing, or if you’re worried that if you put your prices up you’ll lose customers, then you need to listen to the Pricing Man, Hermann Simon. Key takeaways: How people should think about pricing with Coronavirus Pricing is not always about price Pricing is about the value perceived by customers How to establish the value of Porsche The power of branding when pricing How Evian beats the local water The power of multidirectional pricing No company has ever failed from making a profit

Episode Notes

If you have a fear of pricing, or if you’re worried that if you put your prices up you’ll lose customers, then you need to listen to the Pricing Man, Hermann Simon, author of over 35 books on the subjects of profit and pricing. 

“Pricing is about value, or more precisely, the value perceived by the customers. If the customer perceives a high value, he or she is willing to pay a high price. If the perceived value is lower, you have to offer the product at a lower price.”

Hermann Simon has lived two lives: in the first he was a boy on a farm in the Eifel region of Germany. In the second he is the Founder and Honorary Chairman of Simon-Kucher & Partners, a global consultancy with over 1500 employees. He’s an expert in strategy, marketing and pricing and he’s the only German in the “Thinkers50 Hall of Fame” of the most important management thinkers in the world.

“No company has ever failed from making a profit. Most companies are revenue driven, market share driven, sales driven and only about one quarter are truly profit-oriented.”

This is an incredibly insightful podcast about the importance of pricing and the need to understand the complexity of price, as well as looking at new pricing techniques. We hope you enjoy it as much as we did. 

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