--- title: The 5 Top Reasons To Price Better description: Pricing is the most important profit-lever in your business and should never be neglected. Here are 5 reasons improving your pricing should be a top priority. image: https://blog.pricebeam.com/hubfs/Blog/price%20coordination.jpg --- [Skip to content](https://blog.pricebeam.com/the-5-top-reasons-to-price-better#main-content) [![PriceBeam](https://blog.pricebeam.com/hs-fs/hubfs/lead-flow-images/PBLogoTransparent%20(1).png?width=400&height=100&name=PBLogoTransparent%20(1).png)](https://www.pricebeam.com/) - Solutions ![RGM360](https://blog.pricebeam.com/hs-fs/hubfs/RGM360_Headlines.png?width=319&height=255&name=RGM360_Headlines.png)[PriceBeam RGM360](https://www.pricebeam.com/rgm360) is an end-to-end Revenue Optimization Platform, offering unmatched value by integrating market research, internal data with AI and next-generation simulation and optimization tools. 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[Newsletter](https://www.pricebeam.com/newsletter) - [RGM Pulse Survey 2026](https://www.pricebeam.com/rgm-pulse-survey-2026) - About - [Company](https://www.pricebeam.com/about) - [News & Events](https://www.pricebeam.com/news) - [Partners](https://www.pricebeam.com/partners) - [Press](https://www.pricebeam.com/press) - [Careers](https://www.pricebeam.com/careers) - [Contact](https://www.pricebeam.com/contact) ![Search icon](https://5018647.fs1.hubspotusercontent-na1.net/hubfs/5018647/Design/Icons/Font%20Awesome/search.svg) [All posts](https://blog.pricebeam.com/all) September 13, 2016 # The 5 Top Reasons To Price Better ![Picture of PriceBeam](https://blog.pricebeam.com/hs-fs/hubfs/Images/PBLogoBadge240x240.png?width=50&name=PBLogoBadge240x240.png)   PriceBeam  ·  1 minute read If you are like me, while we have survived the great recession, and business is now booming, we know there will be another recession sooner or later. I'm thinking then; how will it affect my business? How will it affect me personally? But I’m also thinking “how can I use the current situation to my advantage? How can I grow my business and be well prepared from when then next recession hit?” Well, in fact, pricing right you can use now to gain the upper hand in your business. Here is why: - **Leverage**: According to consulting firm McKinsey and Co, pricing have a greater impact on your company’s profitability than any other strategy; among the S&P 500, it three times higher than cost cutting; twice as much as sales volume increases. Do the calculation for your firm. I call this the 1% challenge. Find out the financial impact of a 1% reduction in cost, 1% increase in sales volume and 1% increase in price? You will find that pricing has the highest lever on profits. - **Competitive advantage**: Only a few percent of companies has implemented and executed a pricing strategy based on an in-depths understanding of its customer's willingness to pay. Those who do generate twice the profits compared to peer companies. - **Long-term growth**: Companies with best practice pricing strategy growth at approximately twice the rate of businesses with simple pricing practice. As your competitors falter, your firm should use pricing strategy come out on top! - **Speed**: To price right, to measure what you customers are willing to pay for your product or service and implement the right price is a matter of weeks. - **Now is the time**: There is never a better time to stop leaving money on the table; every day you don't price right, you do!  I hope these short bullets give you some food for thought. Pricing right will help your business tremendously. Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://blog.pricebeam.com/the-5-top-reasons-to-price-better) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.pricebeam.com/the-5-top-reasons-to-price-better) [twitter icon](https://twitter.com/intent/tweet?url=https://blog.pricebeam.com/the-5-top-reasons-to-price-better) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://blog.pricebeam.com/the-5-top-reasons-to-price-better) [envelope icon](mailto:?body=https://blog.pricebeam.com/the-5-top-reasons-to-price-better) ## Related posts [![shutterstock_115512124_L.jpg](https://blog.pricebeam.com/hubfs/Blog/shutterstock_115512124_L.jpg)](https://blog.pricebeam.com/pricing-for-customer-retention-tips-to-increase-repeat-sales) #### [Pricing for Customer Retention: Tips to Increase Repeat Sales](https://blog.pricebeam.com/pricing-for-customer-retention-tips-to-increase-repeat-sales) [![pexels-photo-325153.jpeg](https://blog.pricebeam.com/hubfs/Blog/pexels-photo-325153.jpeg)](https://blog.pricebeam.com/product-bundling-why-individual-price-setting-still-matters) #### [Product Bundling: Why Individual Price Setting Still Matters](https://blog.pricebeam.com/product-bundling-why-individual-price-setting-still-matters) [![](https://blog.pricebeam.com/hubfs/Images/shutterstock_92845171_L.jpg)](https://blog.pricebeam.com/competitor-based-pricing-3-reasons-you-shouldnt-copy-your-competitors) [Pricing](https://blog.pricebeam.com/topic/pricing) #### [Competitor-Based Pricing: 3 Reasons You Shouldn't Use It](https://blog.pricebeam.com/competitor-based-pricing-3-reasons-you-shouldnt-copy-your-competitors) **Pricing Right, Made Easy** Almost all companies struggle to price right. They use methods such as cost plus a fixed margin. They use guesses and gut feel. They peg their price to a competitor’s. They price themselves too low, leaving money on the table, or too high, forsaking sales volume. They lose out on the profits they should be earning. PriceBeam changes all that. With a methodology that is confirmed to be accurate in thousands of projects, PriceBeam provides AI-powered market insights software that generates actionable insights into consumers' willingness-to-pay, competitive price positioning, packaging and assortment dynamics, promotional benchmarking, and opportunities from new product pricing. 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