Randy Aimone discusses why 90% of american businesses don't maximize their income strategies due to poor pricing strategies. We discuss more profitable pricing,

1. Smart
Pricing

3. Farmer’s Harvest
Till Plant Weed Harvest

4. Harvest Time!

5. Farmer’s Harvest
Till Plant Weed Harvest
Business Cycle
Develop Create Market Sell

7. The 4 Levers- 1% better

8. The 4 Levers- 1% better
2.45%
Increased Profits

9. The 4 Levers- 1% better
3.28%
Increased Profits

10. The 4 Levers- 1% better
6.52%
Increased Profits

11. The 4 Levers- 1% better
10.29%
Increased Profits

12. A 1% difference..
increased profit
12
10
8
6
4
2
0
Fixed Cost Sales Quantity Variable Costs Price

13. The 3 Simple Pricing
Models
• Cost Plus
• Competition Based or
“Strategic” Pricing
• Consumer based pricing

14. Cost Plus
My Costs + 25%

15. ‘Strategic’ Pricing
What is my competition
charging for a similar
item?

16. Consumer Pricing
“What can I gouge this sucker
Customer for?”

17. Which Model
are you
using?

18. Why the
traditional models
fail

19. Cost Plus
• No incentive for Efficiency gains
• Price Floor
• Leaving money on the table

20. Strategic
• Who’s saying that the competition is
pricing right?
• Moves your product to commodity
• Southwest vs Delta.

21. Consumer Based
• Negotiation skills reign
• Bad Blood
• Biased based

22. Pay as you wish

23. 4 Price Points for “Fries with that?”

26. Razors & Video Games

28. Price Wars

29. What Did Walmart do to win
the retail game?

30. Think Small
98% of their skus sell
less than 20 copies per year

31. Think Small
1 Billion downloads
@ $0.33 each
= $330,000,000

32. Think Small
1 Billion downloads
@ $0.33 each
= $330,000,000

33. Subscription Model
Fresh Videos, on demand

34. Subscription Model
Fresh Fruits, every month

35. Snob Premium
Which sold (nearly 4x) better:
A Chinese silk scarf for $200-300
or
A French silk scarf for $2000-3000
Same silk, similar designs, same
manufacturer

36. Snob Premium
WHY?!?

37. Pay if it works
Pay only if it works
model.
No results, no pay.

38. So what’s the right
way to price?