Kevin Harrington

Different Approaches to Pricing

different approaches to pricing

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Kevin Harrington

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Cost plus pricing is one of the biggest evils within businesses. It appears the safe approach but fails to maximise opportunity. Also, taking this approach, sale prices tend to erode to the level of cost prices. This is unacceptable for most businesses.

There are in fact many different solutions to determining a price. Some of the ideas are: temporal/time based pricing; multidimensional pricing; risk based pricing; variable pricing. A chart showing these is available for download.

One of the concepts on the chart is the diamond-water paradox:

The diamond-water paradox is the apparent contradiction, or paradox, that although water is on the whole more useful, in terms of survival, than diamonds, diamonds command a higher price in the market.

Can you suggest any more approaches to pricing that I can add to the chart?

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Kevin Harrington
I’m a UK-based B2B marketing consultant, specialising in strategic advice for SME business owners. I bring extensive hands-on expertise to every client engagement. Senior leadership roles across technology, media, payments, and publishing have shaped my practical approach. Highlights include serving as Chief Marketing Officer at The Panoply plc (now TPXimpact), Chief Commercial Officer at Tungsten Network, and Global Marketing Director at BBC Worldwide. Over the years, I’ve guided numerous SMEs through transformation and value creation. Helping businesses evolve and thrive is a genuine passion. Practical marketing insights and succession planning strategies are at the heart of what I do, as I believe growing a business’s asset value should be a rewarding and positive journey for every entrepreneur.
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One response to “Different Approaches to Pricing”

  1. Kevin Harrington

    My apologies to all the people that have been trying to access the chart titled ‘different approaches to pricing’ linked from this post. It got lost somehow…it must have been me. Anyway, I’ve recreated it and it can be accessed from this link: http://www.kevinharrington.com/wp-content/uploads/2009/05/approaches-to-pricing.pdf

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