Impact Pricing’s Mark Stiving on Product Pricing and Discount Strategies

<p class="paragraph" style="margin:0in;background:#FFFFFF;vertical-align:baseline;">Mark Stiving, chief pricing educator at Impact Pricing, joins Channelnomics’ Changing Channels host Larry Walsh to talk about pricing, discounting, and channel sales strategies. </p> <p class="paragraph" style="margin:0in;background:#FFFFFF;vertical-align:baseline;"> </p> <p>No one wants to pay full price for anything. And people love winning. So it should come as no surprise that when it comes to the list price of products, people are always looking for a discount. They want to win a deal.</p> <p>Through partners, manufacturers often offer significant discounts on their products to meet this negotiation demand and avoid losing a sale. The question arises: Why does a list price even exist?</p> <p>It’s a question Mark Stiving, chief pricing educator at the consulting firm Impact Pricing, relishes answer.</p> <p>In this episode of Changing Channels, Stiving explains how a product with a discounted list price creates a unique set of benefits for manufacturers, including making their product seem more desirable and giving the end buyer the perspective that the product is better quality than competitors’ products that may be less expensive. Even so, it can be difficult for manufacturers to determine exactly at what price to sell their products when they must consider the needs and desires of both the distributers and end buyers.</p> <p>In the process of determining this price, manufacturers may also face the temptation to overinflate the list price so they can overinflate the discounted price they’re offering. Alternatively, manufacturers may run the risk of undervaluing and resultantly, underselling their products. As a result, the goal to simplify pricing and determine the right price can seem like an elusive target for manufacturers.</p> <p>Stiving joins Channelnomics’ Changing Channels host Larry Walsh to discuss both the explanation for why the concept of a list price persists, as well as what manufacturers can do to best d