Here’s What You Need to Know Why Your Pricing Deserves a Promotion

When it comes to the 4Ps of marketing, price often gets left in the dust while product and promotion bask in the spotlight. Yet price is the single biggest determinant of profit—so why isn’t it treated like the superpower it is? 

The truth is, most rural marketers avoid studying pricing strategy because it feels like a dark art, something best left to the accounts team or procurement. But neglecting pricing is a huge mistake. Pricing is not just a number—it’s a signal. It tells your customers what your product is worth, what you believe about its value, and whether they should trust you to solve their problem. 

It’s time to give your pricing the promotion it deserves. 

Why Most Pricing Strategies Fall Flat 

Conventional pricing strategies like “cost-plus” or competitor benchmarking are deeply flawed. They focus on internal calculations or external competition without considering the most important factor: the value you create for your customer. 

This is where efficiency vs. effectiveness comes into play. Cutting costs might make you more efficient, but it doesn’t mean you’re solving the right problem effectively. 

Customers pay for outcomes, not inputs. When your pricing reflects the real value you create—how you improve their condition—you’re no longer just another vendor. You’re a partner in their success, and that’s worth paying for. 

The Subjectivity of Pricing 

Here’s the thing about price: it’s not rational. It’s subjective, emotional, and highly situational. 

What one customer is willing to pay depends on their specific needs and context. That’s why needs analysis and customer segmentation are crucial. Your job isn’t to appeal to everyone—it’s to find the customers who value your product the most and are willing to pay for it. 

Let me give you an example. 

I spent 1.5 days fixing my fence last weekend. A qualified handyman could have done it in half a day. I’d have gladly paid more than their hourly rate because the real cost wasn’t the fence—it was the time I lost with my kids. For me, the problem wasn’t the fence; it was time. 

Pricing is about solving the right problem for the right person. 

Confidence: The Key to Higher Prices 

Most businesses don’t charge what they’re worth because they lack confidence. They’ve never sat down to work out their true value. 

As David A. Baker puts it:
“Price transmits the most powerful signal you can send to a customer: what your company believes your product is worth.” 

Ask yourself: 

• What is your product truly worth? 

• What specific problem does it solve for your customer? 

• How does solving that problem make them feel? 

• What proof do you have to back up your claims? 

When you start thinking in terms of value created rather than costs incurred, you’ll see why your pricing deserves an upgrade. 

Dynamic Pricing in Action 

Let’s look at industries that have mastered pricing: 

Airlines.
One of the most commodified industries in the world, yet airlines use dynamic pricing to their advantage. Need to fly last-minute? Pay more. Want to fly direct? Pay more. Willing to endure a layover? Pay less. 

Airlines don’t just sell seats; they sell convenience, time savings, and flexibility. The person sitting next to you likely paid a completely different fare based on their needs. 

Bottled Water.
Water is free—or at least cheap—yet bottled water is a $1.2 billion industry. Why? Because of perceived value. Context matters. A $2.99 bottle at the grocery store might be $50 at a luxury restaurant or priceless in a desert. 

Luxury Brands.
Why do people pay 30% more for a MacBook over a PC? Or choose a European car over a perfectly reliable Japanese one? Because price sends a signal about quality, status, and significance. 

The Profit Power of Pricing 

A McKinsey study found that a 1% increase in price leads to an 11% increase in profit. That’s more than three times the impact of increasing market share or cutting costs. 

And yet, most marketers overlook pricing as a profit lever. 

Great marketers understand the power of perceived value. They don’t discount their way to the bottom—they build brands that command premiums. 

Why Pricing Is the Ultimate Positioning Tool 

Your price doesn’t just reflect your product; it positions your brand. It attracts the customers you want and repels the ones you don’t. 

When you lead with cost-plus pricing, you’re essentially admitting you’re a commodity. And commodities can only compete on price—which means a race to the bottom. 

Instead, think of pricing as a signal of value. It tells your customer: 

• This product solves your problem. 

• This solution is worth the price. 

• You can trust us to deliver. 

Final Thought 

Price is more than just a number—it’s a story. It’s the clearest expression of what you believe your product is worth and the value it creates for your customers. 

When you perfect your pricing, you protect your profits, position your brand, and attract the right customers. 

Isn’t it time to give your pricing the promotion it deserves? 

Now go get ’em.