The 6 P's of pricing strategy

"Pricing is one of the most powerful growth levers a business has, yet it is still one of the most overlooked. While teams spend months refining product and brand, pricing decisions are too often rushed, emotionally charged, or guided by instinct rather than insight. Under the pressure of rising costs and competitive pressures, many leadership teams resort to the fastest fix: promotions to meet short-term targets or price increases to plug a margin leak."

"Take two companies facing the same rising costs. One applies a uniform 10% price increase to protect margin. It works briefly, until customers notice and push back. Sales slip and the business reacts with discounts that instantly undo the uplift they were counting on. The other takes a more thoughtful approach. They identify where value is strongest, redesign how options are packaged and presented, and adjust prices selectively. A year later, revenue and gross margin are up, and customer trust remains intact."

"Positioning shapes how customers view your product or service when compared to the alternatives. That may be another version of your offer, a competitor offer, or a completely different option that your customers believe can get the job done. Where you sit among those options shapes what customers are willing to pay. Is your offer seen as premium or budget? A "want to have" or a "need to have"?"

Pricing is a powerful growth lever but often receives insufficient strategic attention. Teams invest in product and brand while pricing decisions are rushed, emotionally charged, or guided by instinct. Cost and competitive pressures prompt quick fixes such as promotions or uniform price increases that can provoke customer pushback and erase margin gains. High-performing companies treat pricing as an evidence-led discipline rooted in customer value perception. They target price changes where value is strongest, redesign packaging and presentation, and adjust prices selectively to grow revenue and gross margin while preserving customer trust and clear market positioning.

Read at Fast Company