In this episode of Pricing College – Aidan and Joanna discuss commoditisation of a product or service – and why it can really impact your profitability over time.

TIME-STAMPED SHOW NOTES:

[01:05] Does the finance team undermine your value efforts?
[01:20] If compete on low price – is your product just the same as all others.
[01:45] Aidan gives examples such as shares on stock market, or raw materials.
[02:15] Joanna talks about the commodity mindset.
[02:35] Some customers buy on a price only basis. Commodity mindset on buy and sell side.
[03:05] B2B tenders often push you down to commoditisation.
[03:30] Aidan compares apples with apples!
[04:15] Value drivers such as delivery are often not even discussed.
[05:10] What is the risk in buying from a certain supplier vs another.
[05:50] Would you pay more for a Rolex from a shop or a street corner.
[06:30] We pay more to avoid risk when making a buying decision.

LINKS MENTIONED IN TODAY’S EPISODE:

Value at risk concept

Replica watches