Probably the greatest feeling in the world is that moment of discovery when the light bulb goes on and we are convinced we understand.  I think what we most seek is that instant of bliss that comes from understanding and being understood.  That feeling of connection is pricing for me.  When I work through a value quantification project, and the executive replies “It’s a recipe for printing money”, I know he gets it.  When I hear from his customer that “His company was the only one that clearly demonstrated why we needed to make the investment”, I know his customer gets it.  That’s pricing.

Pricing is the nexus of marketing and finance.  It is the mobilization of the marketing engine of the business in support of the financial aims of the business.  Pricing is that razor sharp edge where we decide, in collaboration with our customer, on the exchange of value.  It is the forging of the financial relationship, for the benefit of both, between a business and its customers.  Pricing is management of the value exchange. 

When everything else is stripped away, pricing is ultimately about fairness and integrity.  It is about walking with our customers on a shared path for mutual advantage.  The price and terms we agree to represent our shared decision on an equitable distribution of the rewards of our effort.  That fairness is based on a candid exchange of ideas: integrity.

Why?  Because pricing is about understanding, communication, customers, business efficacy, fairness and integrity.

Tim Matanovich

Value and Pricing Partners, LLC

July 30, 2010