Developing an effective and complete marketing strategy for your business is never a simple task. The first place to start is with the Marketing Mix, otherwise known as The Four P’s of Marketing: Product, Promotion, Place and Price.
As the term "mix" would suggest, these elements are meant to work in concert with one another, however, most marketers spend very little time thinking about the price of their products and services. Fewer than 5 percent of Fortune 500 companies have a full-time function dedicated to pricing, according to data from the Professional Pricing Society, the world’s largest organization dedicated to pricing. McKinsey & Company has estimated that fewer than 15 percent of companies do systematic research on this subject [source].
So this means that you are spending hours developing and fine-tuning your product offering. You are coming up with innovative and creative promotions in order to drive demand. You’ve carefully selected your location and are taking advantage of all of your local channels and connections. But what about your price? How did you come up with it? Have you ever revisited what you’re charging?
Here are a few considerations when pricing managed IT services: