When pricing requires more explaining than your product

Price list complexity

If your price list requires more explaining than your products then you are obviously doing something wrong.
Of course you can invent very complex pricing methods or pricing calculations. Or confuse people with presenting all the different prices like: End-user price, Direct customer price, Large customer price, Reseller price, Partner price, Distributor price.
A price list or pricing calculation needs to be simple and obvious: requiring no explanation or no room for mistakes. Not only for your customers but also for your sales team as they can make errors too which can result in a lower margin or scare away customers that are getting a too high price.

Less is more

The time required and lost for your sales team or salesmen explaining the price system to customers or resellers or partners or distributors is a waste of time that could be better used for listening to your customers. The more the salesman has to talk the less time he has for listening to the potential customer.

Keep price list simple as well as the calculation method as errors will result in less revenue.

How easy is your price list ?

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