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We can’t blame the economy forever. Yes, purse strings are tight. And yes, raw materials are growing increasingly expensive. But your hands aren’t completely tied. Many manufacturers are finding that modifying their pricing structure is helping them ring up near-record revenues and profits in spite of economic and market challenges.

Their approach? Strategic, or value-based, pricing: the practice of pricing products based on their perceived and relative value rather than applying a set margin across product lines. The latter, referred to as the cost-plus approach, is the pricing method still in use by the majority of manufacturers. Those who are breaking away from this traditional approach are looking to tap into the full potential of their product value. It’s paying off for them in revenues, profits and company value.

Emily Maltby, Wall Street Journal October 27, 2010

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Earlier this year, Allen Ackerman decided to charge more for his firm’s employee-placement services. The company, A-List Placement LLC, did not land some potential new customers, he says, but revenue is up 30% compared with last year.

Mr. Ackerman’s move to hike prices comes as more of his peers are doing the opposite. September marked the 22nd consecutive month in which more business owners reported cutting average selling prices than raising them, according to a survey by the National Federation of Independent Business, a trade group in Washington, D.C. Only 12% of owners said they raised prices, the survey showed.

“Owners and managers are struggling to maintain sales volume and market share,” says Ralph Zuponcic, managing partner at pricing strategy firm PricePoint Partners LLC in Hudson, Ohio. “To save that, many will drop prices,” he says. “The economy is driving that.”

The majority of small-business owners are lowering or holding firm on price points as consumers keep close tabs on their spending, according to the NFIB. The price wars will likely heat up as the holidays approach, Mr. Zuponcic says.

Renowned for the innovative pricing programs he has introduced to Executive Education and MBA students at The Ohio State University, and to Executive MBA students at Rice and Tulane Universities, Larry Robinson, Ph.D. has joined the PricePoint Partners team as director of training and development, to provide clients with new opportunities for learning the ins and outs of pricing strategy.

With pricing expertise that spans decades, Larry is passionate about the role of pricing in profitability, and he shares his knowledge in a way that is understandable, practical and actionable.

“I have taught the principles of pricing strategy for the past decade,” says Larry. “My goal now is to take these lessons directly to executives and offer them one-on-one support in developing and implementing effective pricing solutions.”

Larry’s expertise complements that of the PricePoint Partners team – a team dedicated to helping manufacturers, distributors and B2B service companies improve profitability and company value through data-driven pricing strategies. PricePoint’s pricing analytics uncover opportunities that help companies optimize their pricing structure, effectively lifting their profit margin.

“We are absolutely delighted to add Larry to our team,” says PricePoint Managing Partner Ralph Zuponcic. “He will bring new insights to our clients, offering them knowledge and cutting-edge solutions to their pricing challenges. Backed by Larry’s expertise and our analytics, our clients will be fully prepared to move forward confidently … and profitably.”

Sign up for PricePoint Partners’ monthly newsletter, packed with information and tips from Dr. Larry Robinson, Ralph Zuponcic and other pricing resources.

Reprinted with permission from Marketing News, published by the American Marketing Association,
Elisabeth A. Sullivan, January 15, 2008 page 8.
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…Customers want value and they’re willing to pay for it. Savvy marketers price their products accordingly, using value-based pricing. “Value-based pricing is pretty much just what it says: It’s pricing a product the way it is perceived by customers in the marketplace,” says Ralph Zuponcic, managing partner of PricePoint Partners, a business-to-business pricing management firm in Hudson, Ohio.

Justin Martin, Fortune Small Business September 13, 2007

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Pricing issues often vex small businesses, especially in today’s climate, with competition – domestic, foreign, and Internet – rising along with costs. But veteran business owners and pricing experts say that if more small companies freshly examined their competitive positions and service offerings, they would find that they could raise prices, keep key customers, and boost their bottom line. “Raising prices is risky,” says Ralph Zuponcic, a Hudson, Ohio, consultant, “but so is not raising prices.”

Claire Adrian, CFO Magazine October 13, 2004
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…Cleveland-based PricePoint Partners Inc. specializes in industrial and business-to-business pricing. Co-founder and senior partner Ralph Zuponcic says the firm finds opportunities to improve revenue by examining areas in which loss may occur, such as excessive discounting, poor negotiation skills, or missed opportunities in transaction fees. “We look in all the cracks in the floor,” he says.
But price consulting doesn’t come cheap. In addition to a small management fee to cover costs, PricePoint receives a percentage of a company’s actual price-improvement gain. Says Zuponcic: “We share the risk with our clients, and they all seem to like that.”