Insights & Tips

Already a subscriber? Login

Become a subscriber and unlock an information arsenal focused on making your pricing efforts more effective.

A Substitute for Perfect Pricing

Are you familiar with the concept of a platonic ideal?

If it’s been a long time since your last philosophy class (or if you never took one), here’s a refresher. Plato said that the most perfect example of anything exists as an abstract idea. For instance, the perfect form of a chair exists as an abstract thought. All the physical chairs that exist in the world are our attempts to copy that perfect chair. In Plato’s philosophy, when we see an object and recognize it as a chair, it’s because the physical chair in some way resembles the abstract ideal that we have in our minds.

A lot of pricing practitioners are chasing the platonic ideal of the perfect price. They want to find exactly the highest price that each customer is willing to pay — the maximum price that would leave each buyer feeling like they got a good deal.

While perfect pricing is great in theory, like any platonic ideal, it’s almost impossible to achieve in real life. We’ve talked to many of the best B2B pricing teams around, and none of them have ever said that they achieved perfection.

In fact, for plenty of pricing groups, just following best practices seems unrealistic. Sure, they agree that most of the best practices they’ve read about are good ideas, but their organizations have so many hurdles in place that the pricing teams don’t see how they could ever put those ideas into practice.

Fortunately, you don’t need to achieve perfection or even follow all the best practices to have an impact on your company.

Rather than striving for “perfect,” we encourage you to simply do a little better. Perfection is intimidating, but “slightly better” — well, that’s something almost anyone can do.

And if you keep striving to do a little better all the time, you will slowly get closer to that platonic ideal.

The key is that you have to actually do something. Just hoping things get better isn’t going to do the trick.

If you’re not sure where to start, check out the webinar on ‘Better’ Practices for Pricing Improvement. Like everything we do here at PricingBrew, it’s focused on pragmatic, practical approaches to improving pricing. Rather than setting pie-in-the-sky goals, it draws on real-world research to reveals actionable steps you can take today to improve your prices.

You should also watch Pricing Process Improvement. It too contains realistic advice on improving your workflows with the ultimate goal of increasing margins.

Ideals are great — but don’t let them get in the way of real-world improvements.

Get Immediate Access To Everything In The PricingBrew Journal

Related Resources

  • Getting Sales To Sell the Value

    Your offerings deliver greater value. But at the slightest pushback from a buyer, your salespeople give in and start discounting that value away. In this webinar, we explore how to change this dynamic for good.

    View This Webinar
  • The New Benchmarks for B2B Pricing Excellence

    With a lever as powerful as pricing, it’s important to evaluate where you have room for improvement. This report helps readers to benchmark their pricing capabilities through a series of self-assessment questions in 10 vital areas.

    View This Research
  • Developing Pricing Leaders

    How do we develop the next generation of pricing leaders? How do we equip our team members to take on more responsibility? And how do we do it all as a matter of course rather than as an afterthought?

    View This Webinar
  • How to Avoid Pricing Panic

    How should you respond when something disruptive happens in your market? How do you avoid overreaction? How do you balance speedy action with smart action? And how do you prepare for the next disruption?

    View This Webinar