{"id":3340,"date":"2024-08-12T09:00:43","date_gmt":"2024-08-12T08:00:43","guid":{"rendered":"https:\/\/data4success.de\/?p=3340"},"modified":"2024-08-02T08:16:25","modified_gmt":"2024-08-02T07:16:25","slug":"selling-price-cost-margin-give-your-money-away-for-christmas","status":"publish","type":"post","link":"https:\/\/data4success.de\/en\/selling-price-cost-margin-give-your-money-away-for-christmas\/","title":{"rendered":"Selling price = costs + margin? Better give your money away for Christmas!"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"3340\" class=\"elementor elementor-3340\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6fcaa6a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6fcaa6a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7dc8dd0\" data-id=\"7dc8dd0\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c5cff18 elementor-widget elementor-widget-text-editor\" data-id=\"c5cff18\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>In the world of sales and especially in the world of enterprise software such as <strong>Microsoft Dynamics NAV<\/strong>, <strong>Navision<\/strong> and <strong>Business Central<\/strong> It is tempting to calculate the price of a product simply as the sum of the costs and a fixed margin. But what if your customers were willing to pay more for your product? Then you could be giving away money.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-50abc37 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"50abc37\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-46e004e\" data-id=\"46e004e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-eaa2cd1 elementor-widget elementor-widget-text-editor\" data-id=\"eaa2cd1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3><strong>Why the traditional approach falls short<\/strong><\/h3><p>The traditional approach of calculating sales prices based solely on your own costs neglects a crucial component: the value the customer places on your product. If the customer is willing to pay more than you are asking, you are missing out on potential profit. To avoid this, you should not only keep an eye on your costs, but also on the price your customers consider appropriate.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b3044bc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b3044bc\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-449f54a\" data-id=\"449f54a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-12b23e9 elementor-widget elementor-widget-text-editor\" data-id=\"12b23e9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3><strong>Peter van Westendorp's method: more than just a gut feeling<\/strong><\/h3><p>Peter van Westendorp has developed a method to systematically determine the price sensitivity of customers. With this method, you can find out the optimal price range for your product by asking potential buyers directly. The questions you should ask are:<\/p><ul><li><strong>At what price would that be a great deal? (Great Deal)<\/strong><\/li><li><strong>At what price would your confidence crumble because it's too cheap? (Too Cheap)<\/strong><\/li><li><strong>At what price would you have to think a little longer before you actually buy the product? (Could Justify)<\/strong><\/li><li><strong>At what price would you find the product so expensive that you would not buy it? (Too Expensive)<\/strong><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c346b19 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c346b19\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-dab2a2c\" data-id=\"dab2a2c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-50e998a elementor-widget elementor-widget-text-editor\" data-id=\"50e998a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3><strong>How pricing works in practice<\/strong><\/h3><p>Once you have collected this data, you can visualize the answers in a line chart. For each of the four questions, a curve is created that shows the percentage of respondents who would buy the product at a certain price as a <strong>Great Deal<\/strong>, <strong>Too Cheap<\/strong>, <strong>Could Justify<\/strong> or <strong>Too Expensive<\/strong> rate.<\/p><p>Here is the highlight:<\/p><ul><li><strong>Minimum price<\/strong> \ud83d\udcc9: The point at which the lines of \"Too Cheap\" and \"Could Justify\" intersect shows the lowest acceptable price.<\/li><li><strong>Maximum price<\/strong> \ud83d\udcc8: The point at which the \"Great Deal\" and \"Too Expensive\" lines cross indicates the highest acceptable price.<\/li><li><strong>Optimal price point<\/strong> \ud83d\udcb0: The intersection of \"Too Cheap\" and \"Too Expensive\" marks the ideal price at which your product is perceived as neither too cheap nor too expensive.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c98e7fd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c98e7fd\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0cb71cd\" data-id=\"0cb71cd\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4d3be38 elementor-widget elementor-widget-text-editor\" data-id=\"4d3be38\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3><strong>Surveys as the key to success<\/strong><\/h3><p>Using this method and conducting targeted surveys will not only give you a sound pricing strategy, but will also increase your profit margins - without deterring customers. The findings from these surveys could therefore prove to be extremely worthwhile.<\/p><p>Remember: the right price is not just a question of cost, but also of perceived value, especially for complex software solutions such as <strong>Microsoft Dynamics NAV<\/strong>, <strong>Navision<\/strong> and <strong>Business Central<\/strong>. So don't just set the price according to a formula, but take the time to research the price sensitivity of your target group. Your customers - and your bank balance - will thank you for it!<\/p><p>Please visit our <a href=\"https:\/\/data4success.de\/en\/training-courses-power-bi\/\">Training<\/a>if you want to gain further new knowledge about Power BI and the world of Business Intelligence.<\/p><p>If you have any further questions on this topic or require support with your data analysis, please do not hesitate to contact us.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>In der Welt des Verkaufs und insbesondere in der Welt der Unternehmenssoftware wie Microsoft Dynamics NAV, Navision und Business Central ist es verlockend, den Preis eines Produkts einfach als Summe der Kosten und einer festgelegten Marge zu berechnen. Doch was, wenn Ihre Kunden bereit w\u00e4ren, mehr f\u00fcr Ihr Produkt zu zahlen? Dann verschenken Sie m\u00f6glicherweise [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":3347,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/data4success.de\/en\/wp-json\/wp\/v2\/posts\/3340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/data4success.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/data4success.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/data4success.de\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/data4success.de\/en\/wp-json\/wp\/v2\/comments?post=3340"}],"version-history":[{"count":11,"href":"https:\/\/data4success.de\/en\/wp-json\/wp\/v2\/posts\/3340\/revisions"}],"predecessor-version":[{"id":3352,"href":"https:\/\/data4success.de\/en\/wp-json\/wp\/v2\/posts\/3340\/revisions\/3352"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/data4success.de\/en\/wp-json\/wp\/v2\/media\/3347"}],"wp:attachment":[{"href":"https:\/\/data4success.de\/en\/wp-json\/wp\/v2\/media?parent=3340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/data4success.de\/en\/wp-json\/wp\/v2\/categories?post=3340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/data4success.de\/en\/wp-json\/wp\/v2\/tags?post=3340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}